The FTC has accused Evolv Technologies of overstating the capabilities of its in-school weapons-detection system.
The FTC wants to ban Evolv from making unfounded claims about its products' ability to detect weapons using AI.
The proposed settlement order requires Evolv to give some school customers the option to cancel their contracts.
Evolv stated that it had collaborated with the commission to resolve the matter, and agreed to offer a limited number of school clients the option to cancel their contracts.