United States of America: Federal Trade Commission filed lawsuit against Air AI over alleged deceptive claims targeting small businesses

Description

Federal Trade Commission filed lawsuit against Air AI over alleged deceptive claims targeting small businesses

On 25 August 2025, the Federal Trade Commission (FTC) filed a complaint in the District Court for the District of Arizona against Air AI Technologies, its owners and affiliated companies. The FTC alleged that Air AI Technologies engaged in deceptive practices by making false or unsubstantiated claims about earnings, misrepresenting refund guarantees and services and failing to comply with disclosure and refund obligations under the Telemarketing Sales Rule and the Business Opportunity Rule. The FTC stated that since February 2023, Air AI promoted coaching services, resale licences and a conversational AI product with promises of rapid and substantial profits and full refunds, which were rarely delivered.

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Scope

Policy Area
Consumer protection
Policy Instrument
Fair marketing and advertising practice requirement
Regulated Economic Activity
ML and AI development
Implementation Level
national
Government Branch
executive
Government Body
consumer protection authority

Complete timeline of this policy change

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2025-08-25
under deliberation

On 25 August 2025, the Federal Trade Commission (FTC) filed a complaint in the District Court for t…