In a class-action lawsuit settlement, Apple agreed to pay $250 million due to claims that it exaggerated the capabilities of artificial intelligence features on new iPhones. Consumers are eligible for refunds ranging from $25 to $95 per device based on the number of claimants.
The lawsuit was triggered by Apple’s June 2024 announcement of ‘Apple Intelligence,’ a competitor to products like OpenAI’s ChatGPT. Lawyers representing iPhone buyers argued that advertised AI features were non-existent at launch, remain absent, and may not materialize for years. As per the BBC, Apple delivered new iPhones in September 2024 without these features, notably lacking ‘Apple Intelligence’ and an enhanced Siri.
The issues continued post-launch, with a delay in releasing an upgraded Siri due to quality concerns in March 2025. Additionally, notification summaries misrepresented news articles, leading to their complete deactivation.
While Apple denies any wrongdoing in the settlement, it acknowledges disputes about “the availability of two additional features” within its broader suite of intelligence services, as per court documents.
Marni Goldberg, an Apple spokeswoman, stated that despite introducing numerous features across multiple languages post-launch, the company settled to concentrate on innovation. The resolution applies to U.S. consumers who bought iPhone 15 or iPhone 16 models between June 10, 2024, and March 29, 2025. Approximately 36 million devices sold in this period are covered, with Apple required to notify eligible users within 45 days of May 5.
This settlement aligns with a strategic shift at Apple, highlighted by the retirement of AI head John Giannandrea in December and plans to use Google’s Gemini for powering Siri in January.
Initiated by plaintiff Peter Landsheft over marketing claims, this case is among the first major consumer protection settlements concerning AI product marketing. It arrives as regulatory bodies establish frameworks for evaluating AI performance claims.
The settlement sets a precedent in an era where companies are rapidly integrating AI features into products, addressing concerns about discrepancies between AI marketing promises and their technical execution.