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 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.

The Federal Trade Commission is taking action against weapons detection company Evolv Technologies, claiming the Massachusetts-based company engaged in “deceptive acts” by making false claims and misrepresenting what its detectors could do.