Air AI and its owners will be prohibited from marketing business opportunities under a settlement with the Federal Trade Commission, following charges that the company misled entrepreneurs and small businesses about potential earnings, business growth, and refund guarantees. The announcement was made on Mar. 24 as part of a proposed order filed in the U.S. District Court for the District of Arizona.
The case is significant because it addresses concerns about deceptive practices targeting individuals seeking to start or grow their own businesses. The FTC's August 2025 complaint named Air AI, five related companies, and owners Caleb Maddix, Ryan O’Donnell, and Thomas Lancer as defendants.
According to the complaint, since at least February 2023 Air AI allegedly made false claims that purchasers of their services would likely earn substantial income. The company also reportedly misrepresented refund or buy-back guarantees for products such as the Air AI Access Card or licenses. Other violations included making unsubstantiated statements about profitability and failing to provide required disclosure documents under federal rules governing telemarketing sales and business opportunities.
The proposed order imposes an $18 million monetary judgment against Air AI; however, most of this amount is suspended due to inability to pay. Instead, operators are required to pay $50,000 for consumer relief. Under the settlement terms, Air AI is banned from selling or marketing any business opportunity; making false claims during telemarketing or when selling goods or services; violating telemarketing rules; and making earnings claims without adequate evidence.
The Commission approved filing of the proposed order by a vote of 2-0. It will have legal force once signed by a district court judge.
The Federal Trade Commission advises consumers that it never demands money upfront or makes threats regarding payments. More information on consumer protection topics can be found at consumer.ftc.gov.
