Privacy & Cybersecurity Law Blog

On December 3, 2024, the U.S. Federal Trade Commission published a proposed consent order that would settle its investigation into IntelliVision Technologies Corp. (“IntelliVision”) for making false, misleading or unsubstantiated claims regarding a lack of gender or racial bias in its AI-powered facial recognition technology. Per the FTC’s original complaint, IntelliVision, which was acquired by Nortek Security & Control LLC in 2018, produces facial recognition software that is incorporated into various consumer products, including smart home security systems.

The proposed settlement prohibits IntelliVision from misrepresenting:

• the accuracy or efficacy of its facial recognition technology;
• the comparative performance of its facial recognition technology with respect to categories of individuals; or
• the accuracy or efficacy of its facial recognition technology at detecting spoofing.

If the consent order is finalized, violations may carry a civil penalty of up to $51,744.

The FTC’s press release announcing the proposed consent order highlights that this is the second major facial recognition case it has brought in the past year. The proposed consent order received bipartisan support from commissioners, who voted 5-0 to accept it.

Once the FTC publishes the proposed consent order in the Federal Register, it will be open for public comment for 30 days.

Update: On January 13, 2025, the FTC approved the final order in a 5-0 vote after receiving no public comments.