Apple Agrees to $250 Million Settlement Over AI Features Lawsuit
Apple has agreed to pay a total of $250 million (£184 million) to certain iPhone buyers to resolve a lawsuit accusing the company of misleading consumers regarding new artificial intelligence (AI) features and capabilities.
The settlement, filed Tuesday in a California federal court, does not include any admission of wrongdoing by Apple. It addresses claims brought in a large consolidated class action lawsuit initiated last year.
Details of the Lawsuit and Settlement
The lawsuit alleged that Apple engaged in false advertising related to its AI features branded as Apple Intelligence, including enhancements to its Siri voice assistant.
Under the terms of the settlement, Apple will pay between $25 and $95 to individuals who purchased an iPhone 15 or iPhone 16 between June 2024 and March 2025.
An Apple spokeswoman commented on the lawsuit, stating:
"The lawsuit was focused on the availability of two additional features in a lineup of many released as part of its Apple Intelligence rollout."
She added,
"We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users."
Claims of False Advertising
In a revised complaint filed last week on behalf of the consolidated class of iPhone buyers, the plaintiffs' lawyers asserted that Apple's marketing of the new AI features constituted false advertising.
"Apple promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years, if ever, all while marketing them as the breakthrough innovation,"
the lawyers wrote.
They further stated that Apple launched this AI marketing campaign to compete in the Big Tech race for emerging technologies, driven by companies such as OpenAI and Anthropic.
Criticism of Apple's Innovation and Marketing
Outgoing Apple CEO Tim Cook has faced criticism over the years for a perceived lack of innovation in Apple’s products.
The lawsuit specifically challenged Apple's promotion of Apple Intelligence as delivering a new, improved version of Siri that would transform the voice assistant from a "limited voice interface into a full-fledged personal AI assistant."
"The iPhone 16 was delivered to consumers without 'Apple Intelligence,' and Enhanced Siri never came,"
the lawyers stated.
