FTC takes action against Evolv Technologies for deceiving users

The Federal Trade Commission is taking action against Evolv (EVLV) Technologies over allegations that the company made false claims about the extent to which its AI-powered security screening system can detect weapons and ignore harmless personal items, including in school settings. In the proposed FTC settlement order, Evolv would be banned from making unsupported claims about its products’ ability to detect weapons by using artificial intelligence and would also have to give certain K-12 school customers the option to cancel their contracts, which generally lock customers into multi-year deals. Under the proposed settlement, Evolv will be required to notify certain K-12 school customers that they can opt to cancel contracts signed between April 1, 2022, to June 30, 2023.