It's not magic because it relies on the "fuel" of cool water to evaporate.
YouTube adverts frequently contain fraudulent, misleading information. It appears that no law is being broken.
ETA: the ads I've seen are still deceptive because they're claiming this is revolutionary new technology, which of course it isn't.
https://frinkiac.com/comic?b=AQIBBlMwNkUyMafYCwABEvQBygNqSSB...