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.
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.
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.
Entity
IntelliVision Technologies Corp.
Also known as: IntelliVision Technologies
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/legal-library/browse/cases-proceedings/232-3023-intellivision-matter
2323023c4809intellivisionfinalconsent
https://www.ftc.gov/system/files/ftc_gov/pdf/2323023c4809intellivisionfinalconsent.pdf
2323023c4809intellivisionfinalorder
https://www.ftc.gov/system/files/ftc_gov/pdf/2323023c4809intellivisionfinalorder.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"IntelliVision Technologies Corp."
"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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