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FTC Bars IntelliVision from Deceptive Facial Recognition Claims

IntelliVision Technologies Corp.January 13, 2025Federal Trade Commission

Summary

The FTC finalized an order against IntelliVision Technologies Corp. for making deceptive claims about its facial recognition software's accuracy and lack of bias. The company must now back up any claims with competent testing and is prohibited from misrepresenting the software's performance. No monetary penalty was imposed.

Remedy

IntelliVision is prohibited from making false or unsubstantiated claims about its facial recognition software's accuracy, bias, and anti-spoofing capabilities. The company must rely on competent and reliable testing before making any representations about the technology.

InjunctionConsent Decree

Contract Impact

In-house legal teams should review vendor and customer agreements, particularly those involving AI or biometric software licensing or services, for clauses related to representations, warranties, and performance standards. Focus on terms governing accuracy claims, bias testing, and validation requirements. Agreements may need amendments to mandate competent testing to substantiate any claims about software accuracy or lack of bias, explicitly prohibit misrepresentations, and incorporate specific validation protocols. Additionally, ensure compliance clauses align with FTC standards to avoid deceptive practices, and consider adding audit rights for verifying claims.

Contract Search Terms

accuracy representationsbias testing requirementsperformance standardsmisrepresentation prohibitiontesting and validation protocolswarranty of software capabilitiesAI validation clausecompliance with accuracy claimsnon-discrimination in AIrepresentation and warranty

Violation Types

Entity Details

Entity

IntelliVision Technologies Corp.

Also known as: IntelliVision Technologies

Industry

Technology

Official Sources

Source Evidence

Entity Name
"IntelliVision Technologies Corp."
Violation Types
"lacked evidence to back up its claims that its software had one of the highest accuracy rates on the market and performs with zero gender or racial bias."

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