The Federal Trade Commission (FTC) has banned a voice-first artificial intelligence platform from promoting business opportunities after allegedly fleecing millions from small business owners.
In August 2025, the FTC accused Air AI and its owners – Caleb Matthew Maddix, Ryan Paul O’Donnell and Thomas Matthew Lancer – of making false promises about the earnings potential of its products, which came with refund guarantees, since February 2023.
According to the regulator, the firm claimed that its conversational AI tool can replace human customer service representatives, while allowing small business owners to make tens of thousands of dollars in days and millions of dollars over time.
The FTC says consumers often did not earn the promised gains, and when they asked for a full refund, Air AI and its owners rarely honored the guarantee. According to the regulator, consumers lost as much as $250,000 from the alleged scheme, and many racked up debt.
In a stipulated final order, the FTC bans Air AI from selling or marketing any business opportunity, making false claims or misrepresentations while telemarketing, making false claims or misrepresentations while selling any goods and services and making earnings claims without adequate substantiation or disclosure.
Air AI will also face a suspended monetary judgment of $18 million and pay the FTC $50,000 for consumer relief.
The regulator highlights that the stipulated final order will come into force after the approval and signing by a district judge.
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