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,

Evolv Technologies (NASDAQ:EVLV) has agreed to a proposed settlement with the U.S. Federal Trade Commission to address allegations from the government that the company made false claims about its AI-powered weapons detection system.

The proposed settlement order would ban Evolv from making unsupported claims about its products, and require the security technology company to give certain K-12 school customers the option to cancel their contracts.