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."
The FTC sent warning letters to 12 companies offering 'nudify' tools that generate nonconsensual intimate images, for failing to comply with the TAKE IT DOWN Act (TIDA) by not providing a mechanism for victims to request removal of such content. The letters urge immediate compliance with TIDA, which requires platforms to remove nonconsensual intimate images within 48 hours of a valid request. Noncompliant companies may face future legal action and civil penalties of up to $53,088 per violation.
The FTC began enforcing the TAKE IT DOWN Act on May 19, 2026, a law requiring covered platforms to establish a process for victims to request removal of nonconsensual intimate images and delete such content within 48 hours of a valid request. The agency launched a consumer complaint portal, issued compliance guidance for businesses and consumers, and sent reminder letters to major platforms including Meta, TikTok, and X about their obligations under the law. No specific penalties or enforcement actions against individual companies were announced in this release.
$6.5M
A federal court held Cliq Inc. and its executives Andrew Phillips and John Blaugrund in civil contempt for multiple violations of a 2015 FTC order requiring the payment processor to prevent enabling consumer fraud. The court found the defendants facilitated fraud by processing transactions for high-risk merchants, avoiding fraud monitoring, failing to conduct required underwriting, and ignoring chargeback thresholds. The court imposed $6.5 million in civil contempt sanctions against the defendants.
$795.8M
The FTC and State of Nevada settled charges with lead defendants of the IM Mastery Academy MLM scheme, including Chris and Isis Terry and their affiliated companies, over false earnings claims used to promote financial training programs and a multi-level marketing venture. The stipulated order imposes a $795.8 million judgment, with defendants surrendering nearly $90 million in assets including luxury real estate, vehicles, jewelry, and a yacht, totaling over $100 million with prior judgments from other involved defendants. The order also bans defendants from selling trading-training services, prohibits false earnings claims, and restricts deceptive practices including negative-option misrepresentations and telemarketing violations.
The FTC and State of Illinois, via the Department of Justice, filed a complaint against B.E.S.T. GDR LLC (d/b/a Premium Home Service) and its owner Yosef Bernath for creating thousands of fake home repair business listings with fabricated five-star reviews to deceive consumers. The defendants allegedly routed consumer calls to unqualified representatives, arranged for unlicensed technicians, and violated the FTC Act, Reviews and Testimonials Rule, Gramm-Leach-Bliley Act, and Illinois consumer protection laws. No monetary penalty has been imposed yet as the case is in initial filing stages.
Federal Trade Commission Chairman Andrew N. Ferguson sent letters to over a dozen major technology companies reminding them of their obligation to comply with the Take It Down Act (TIDA) by May 19, 2026. TIDA requires covered platforms to establish a process for victims, including children, to request removal of nonconsensual intimate images, with takedown of content and all identical copies required within 48 hours of a valid request. The FTC also issued supplemental guidance to help companies prepare for compliance and warned that it will monitor and enforce violations of the law.