The Federal Trade Commission (FTC) has settled charges against Air AI and its owners, prohibiting them from marketing business opportunities after allegations of misleading entrepreneurs and small businesses.

The FTC's complaint, filed in August 2025, accused Air AI and its owners—Caleb Maddix, Ryan O’Donnell, and Thomas Lancer—of making false claims regarding earnings potential, refund guarantees, and the nature of their services since February 2023.

Specific allegations included misleading statements about the likelihood of substantial earnings for purchasers, misrepresentation of refund policies, and failure to provide necessary disclosure documents. These actions were found to violate the Telemarketing Sales Rule (TSR) and the Business Opportunity Rule.

The proposed settlement includes a monetary judgment of $18 million, which will be largely suspended due to the company's inability to pay. However, the operators are required to pay $50,000 for consumer relief. The order also imposes a ban on Air AI and its operators from selling or marketing any business opportunities and making false claims in their marketing practices.

The FTC's decision was approved with a 2-0 vote and the proposed order has been filed in the U.S. District Court for the District of Arizona, where it will gain legal force upon approval by a judge.