The Federal Trade Commission has accused a company that makes AI-powered security screening systems for some 800 schools across 40 states of promoting false claims about its ability to detect weapons and keep kids safe.

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.

The Federal Trade Commission (FTC) is taking action against Evolv Technologies, alleging the company made false claims about its AI-powered security scanne