Air AI will be banned from marketing business opportunities as part of a settlement with the Federal Trade Commission over charges the company misled many entrepreneurs and small businesses with deceptive claims about business growth, earnings potential, and refund guarantees.

The FTC's August 2025 complaint against Air AI, five related companies, and their owners -Caleb Maddix, Ryan O'Donnell, and Thomas Lancer-alleged that, since at least February 2023, the company and its owners:

• Falsely claimed that people who purchase their services will or are likely to make substantial earnings;
• Falsely claimed that purchasers of the Air AI Access Card or licenses are protected by a refund or buy-back guarantee;
• Misrepresented the performance, efficacy, nature, or central characteristics of their services, their refund policies, or the risk, earnings potential, or profitability of its services, in violation of the Telemarketing Sales Rule (TSR); and
• Failed to provide consumers with required disclosure documents and earnings claims statements, made false claims about the profitability of the investment and their refund and cancellation policies, and failed to provide refunds when consumers met the refund policy requirements, in violation of the Business Opportunity Rule.

The proposed order against Air AI includes a monetary judgment of $18 million, which will be largely suspended based on the company's and operators' inability to pay the full amount, requiring the operators of Air AI to pay $50,000 to the Commission for consumer relief. Under the proposed order, Air AI and its operators are banned from:

• Selling or marketing any business opportunity;
• Making false claims or misrepresentations while telemarketing or otherwise violating the TSR;
• Making false claims or misrepresentations while selling any goods and services; and
• Making earnings claims without adequate substantiation or disclosure.

The Commission vote approving the filing of the proposed order was 2-0. The FTC filed the proposed order in the U.S. District Court for the District of Arizona.

NOTE: Stipulated final orders or injunctions, etc. have the force of law when approved and signed by the District Court judge.