Apple to pay $250 million in compensation over advertising of non-existent AI features in the iPhone
The BBC reports this.
The lawsuit was filed last year. The plaintiffs accused Apple of false advertising regarding AI features on the iPhone, which the company called Apple Intelligence, including an improved Siri.
The plaintiffs’ lawyers insist that Apple’s marketing was misleading: the company allegedly advertised AI capabilities that did not exist then, do not exist now, and may not exist for several more years. According to them, this was an attempt to catch up with competitors in the AI sector — notably OpenAI and Anthropic.
The lawsuit also states that Apple promised to transform Siri from a ‘limited voice interface’ into a fully-fledged personal AI assistant, but this did not happen.
“The iPhone 16 was released without Apple Intelligence, and the improved Siri never materialised,” the lawyers stated.
Apple stated that the lawsuit concerned “the availability of two additional features” among the many presented as part of the Apple Intelligence launch. The company did not admit fault but agreed to settle the claim “to focus on what matters most — creating innovative products and services”. Compensation ranging from $25 to $95 will be paid to US customers who purchased an iPhone 15 or iPhone 16 between June 2024 and March 2025.
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