WASHINGTON, D.C. — The Federal Trade Commission (FTC) has filed a complaint in federal court seeking to halt Air AI Technologies and its operators from making allegedly deceptive claims about business growth, earnings potential, and refund guarantees. The agency alleges that the company’s practices have caused substantial financial harm to small business owners and entrepreneurs nationwide.
According to the complaint, consumers have lost as much as $250,000 each after purchasing Air AI’s products and services based on promises that the company’s tools and coaching programs would deliver significant profits. Many buyers, the FTC claims, were left deeply in debt after relying on the company’s guarantees.
Alleged Misleading Marketing Practices
The FTC’s complaint targets Air AI Technologies, Inc.—also doing business as Air AI, Air.AI, and Scale 13—its owners Caleb Matthew Maddix, Ryan Paul O’Donnell, and Thomas Matthew Lancer, as well as five affiliated companies.
Since February 2023, Air AI has allegedly promoted a suite of AI-powered business tools, coaching materials, and services marketed through an “Air AI Access Card” program. The company also sold licenses to resell its services.
Among the FTC’s allegations:
- False earnings claims: Air AI and its operators advertised that their “conversational AI” technology could replace human customer service representatives and generate substantial income for users. The FTC says the company promised that customers could earn back tens of thousands of dollars in a matter of weeks or months, and, in some cases, make millions using the service.
- Unfulfilled refund guarantees: Air AI allegedly offered refunds or “buy-back guarantees” if customers failed to earn two to three times their investment within a set timeframe or were dissatisfied for any reason. In practice, the FTC alleges, the company rarely honored these promises. Instead, it claims Air AI delayed responses, left customers without clear communication, and ultimately refused refunds altogether.
- Misrepresentation of services: The complaint states that Air AI misrepresented the efficacy and characteristics of its AI tools, its refund policies, and the risks and profitability of its services.
Violations of Federal Regulations
The FTC alleges that Air AI and its affiliated entities violated multiple consumer protection rules, including:
- The Telemarketing Sales Rule, by making false or unsubstantiated earnings claims and misrepresenting the performance of their services.
- The Business Opportunity Rule, by failing to provide required disclosure documents and earnings statements, misrepresenting refund and cancellation policies, and failing to issue refunds to consumers who met stated requirements.
FTC’s Enforcement Action
The FTC filed the complaint in the U.S. District Court for the District of Arizona against:
- Air AI Technologies, Inc. (also doing business as Air AI, Air.AI, Scale 13)
- Apex Holdings Group LLC
- Apex Scaling LLC
- Apex 4 Kids LLC
- New Life Capital LLC
- Onyx Capital LLC
- Individual defendants Caleb Matthew Maddix, Ryan Paul O’Donnell, and Thomas Matthew Lancer
The Commission voted 3-0 to approve filing the complaint.
Protecting Small Businesses From Deceptive AI Claims
The FTC emphasized that this action is part of a broader effort to ensure AI-related technologies are marketed responsibly and to prevent misleading business opportunity schemes from exploiting consumers.
“Companies that market AI-related tools with false promises of unrealistic investment returns and guaranteed refunds harm hardworking small business owners and undermine legitimate business’s adoption of AI,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection.
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