The Federal Trade Commission (FTC) has initiated action against IntelliVision Technologies Corp. over allegations of deceptive claims regarding its facial recognition software. The FTC asserts that IntelliVision falsely claimed its AI-powered software was free from gender and racial bias and misrepresented the accuracy of its technology.
A proposed consent order would prohibit IntelliVision from making misleading statements about the performance of its facial recognition software, particularly concerning different genders, ethnicities, and skin tones. The FTC's complaint states that IntelliVision lacked evidence to support its claims of high accuracy rates and absence of bias.
"Companies shouldn’t be touting bias-free artificial intelligence systems unless they can back those claims up," said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. "Those who develop and use AI systems are not exempt from basic deceptive advertising principles."
IntelliVision, based in San Jose, provides facial recognition software for home security systems and smart home touch panels distributed by Nice North America, LLC. The FTC contends that IntelliVision did not train its software on millions of faces as claimed but instead used images from approximately 100,000 individuals.
Additionally, the FTC alleges that IntelliVision's anti-spoofing technology claims were unsupported by adequate evidence.
Under the proposed settlement terms, IntelliVision must refrain from misrepresenting:
- The accuracy or efficacy of its facial recognition technology.
- Comparative performance concerning individuals' genders, ethnicities, and skin tones.
- The ability to detect spoofing accurately.
IntelliVision is also required to base any claims on competent and reliable testing results.
This case marks the second significant AI facial recognition issue addressed by the FTC within a year. Last December, Rite Aid faced restrictions over similar allegations related to surveillance practices using facial recognition technology.
The Commission unanimously voted to issue an administrative complaint and accept a consent agreement with IntelliVision. Commissioner Andrew Ferguson provided a concurring statement.
The consent agreement will be published in the Federal Register for public comment for 30 days before finalization. Instructions for submitting comments will be included in the notice.
An administrative complaint is issued when there is "reason to believe" a law violation has occurred or is occurring in public interest proceedings. A finalized consent order carries legal weight; violations may incur civil penalties up to $51,744 per breach.
Lead staff attorneys Robin Rosen Spector and Amanda Koulousias from the FTC’s Bureau of Consumer Protection are handling this matter.
The Federal Trade Commission aims to promote competition while protecting consumers through education. More information on consumer topics can be found at consumer.ftc.gov or ReportFraud.ftc.gov for reporting fraud or scams.
