Evolv Admits FTC "Questions" Its Marketing Practices
While Evolv's financial results are outperforming its own expectations, the company admitted that the US government agency that regulates marketing is questioning its marketing practices.
Neither Evolv nor the FTC has given any public disclosure about what, if anything, the FTC might do to Evolv.
IPVM has repeatedly criticized Evolv's deceptive marketing, including:
- Evolv No Stopping Videos Are Deceptive Marketing
- Secret Evolv New Setting Contradicts Marketing, Creates Security Risk, Addressing Cellphone False Alarms
- Evolv Violating FTC Rules, Refuses To Substantiate 10x Competitor Claim
- Evolv "Deeply Regrets" Generalizing About Its Capabilities, Conflicts With FTC Rules
- Evolv Deceives Parents
Inside this report, IPVM examines Evolv's announcement, what the FTC might be investigating, and the impact of FTC action on the company and investors.
Executive *******
*****'* ********* ****** *** **** ** FTC ******, ***** ***** ******* ************-****** fines, ** *** *** ***** ***** Evolv ** ****** *** ** ******* and **** ** ********* ** *** public.
***** **********, ****** *** *** *** "requested ***********" ***** "********* *********," *** Evolv ****** *** ********* ** *** 8-K, ****** ** ******* ***** ***** *******. *******, *** ******* ***** ********* an *** ************* *** *,*** ****** referencing ***** ** *** *** **** an **-***** ******, ******* ***** ** well ***** ** ** *************.
******* ****** ********* ****, ***** ***** was **** ~**% ** *** ***, indicating *********' ******* **** *** *** investigation.
Evolv *** ************
** ******* **, ****,***** ************ ************* **** *******, ******* ****** *********** **** ****** revenue ********. *** ** *** *** 8-K ******, ***** ********* "*** *.*. Federal ***** ********** *** ********* *********** about ******* ******* ** *** ********* practices."
Evolv *** ************ ** *********
*****'* ********** ********** *** *********, ********** the *** **** "********* ***********", *** saying "** *** ******* ** ****** their *********...** *********** *** ******* **** about *** *******." *******, ***** *********** corroborated *** ******* *****'* ****** * day ***** **** *** *** ** investigating *** *******.
***** ********** ******* *** *****-*** ************ as * ********* *** *********** ******** of *********** ****** **** **** ** really ******* ** **: ** ******** investigation. *** ******* ***** ***** *,*** emails *********** ***** ** *** *** over ** ****** *** ***** *** sources ******** **** *** *************.
**** ****** ** ****** **** ********** does *** ****** ***** ******* ** official *************. ***, ** ***** ** aware, **** *** ***** ******** ***** or ********** ************* ***** **** *** ***** ** an *** *****. ***** ************ ************* "**** ********** ******** ** ******** to ********** *** ************ ** *** time."
***********, ***** ***** **** ******* **** disclosure ** *** ****** ** ** is ******** ** *********' ************ ** the *******. ** *** *** ****** had ********* *** *****, **** ***** not ** ********. **** ***** ** imply ** *** ************* **** **** is ******** * ********* ********, ** risks ******** ***** ****** *** ***** over ** *********** ***** *** ***** represent ********* *************.
Evolv ***** **** ~**% ***** *** ****
*****'* ***** *** **** ~**% ** the *** *************** ********* ****** *** *********** ******, ********* ********* revenue ***********. *****'* ***** ***** **** so ******** ***** ** ******* ****** for *** *** ************, ************ * highly ******** ********** *** *** *******, and ******** **** *********:
Why ******** ***?
*** ********* ******** ** *** *** Evolv **** ******** ***, ***** *** Capitol ***** ******, ***** **** ** indicates *** ***'* "********* **** **** going ** *** ******. ** ***** has ***** ***** ***** "*********" *** months, ****** ***** **** ********* **** to *** ********* *******?
** *******, ******** **** ** ***** by *** ******** ** *** ******* should ** ********* ** *********. *******, there *** ***** ***** ********* ** whether ******* ************** **** ** ** disclosed.
** ****,* ******* ***** ******* **** ** * *********** ******* that * ******* ******* *** *** required ** ******** ** *** *************. Still, ** ******* ***** ***** ******** that ****** ***** *** ******* *** previously ********* **** ********** ********. ** are *** ***** ** ***** ********** disclosing **** ********* ******** ** *** investors, ** ** ** ******* ** this ****** ***** *****.
******* *********** ** **** ***** *** under * **** ** * *** order ** *** *** ***** ** completed *** *************. **, ***** ****** to **** ** **** ** ********, but **** *** ******* ***** *********, the ******* **** ** *** ** disclose ** *** ********* - ** answer ********* ********* **** *** ******** who *** *** ******.
*******
** *** *** ***** ******, ***** faces *********** ******** ** ***** ***/** FTC ****** ** ***** ******* ********* or **** *********** ** *** ******. For ********, *** *** ***** ***** Evolv ** ***** ********* *** ********* as *** ****** **** ************ ***** detectors, *** ******* ******* ** ******* ********** ***** ********* ****** **** "*********** the ********" ** ********* *** ********,***** ** *****.
** ** ******* ** **** ****** Evolv *** ** **** ***** *** FTC. *** ****** ** ****** ***** indicate ***** ** ***********, *** ******** responding ** ******** *** *******; ********* often ********* **** *** *** ** order ** ***** * **** ******** settlement. *** ****** ** ****** ***** also ******** ** ********* ****** **** Evolv's ******. ** *** ******, *** FTC ***** ********** **** ***** ** court.
Update (**/**/**): This article has been updated to reflect that the FTC told The Capitol Forum there were 1,105 emails referencing Evolv but not all are necessarily between Evolv and the FTC.
** *****'* ******** **** **** ****, Evolv ********* **** *** ******** **** the *** ***** ** ***, * months ***** ** ***** ********** **.
Update (**/**/**): This article has been updated to reflect that the FTC told The Capitol Forum there were 1,105 emails referencing Evolv but not all are necessarily between Evolv and the FTC.