Apple has agreed to pay $250 million to settle a lawsuit that accused the company of misleading customers about artificial intelligence (AI) features in its latest iPhones. The settlement was filed in a California federal court on Tuesday and aims to resolve claims brought in a large consolidated class action case. Apple has not admitted any wrongdoing as part of the agreement.
The lawsuit claimed that Apple has committed false advertising by promoting “Apple Intelligence,” its purported Artificial Intelligence (AI) capabilities, as major selling points of the iPhone 15/iPhone 16.
While promoting these features, the plaintiffs claim that Apple has overstated enhancements to Siri/A.I., leading consumers to believe that the technology was more advanced and readily available than it was at the time of purchase.
Consumers in the U.S. who purchased an iPhone 15/iPhone 16 from June 2024 to March 2025 are entitled to compensation under the settlement terms. Payments are expected to range from $25 to $95 per person, depending on the number of valid claims submitted.
An Apple spokesperson said the lawsuit focused on “the availability of two additional features” within a broader set of AI tools released as part of its Apple Intelligence rollout.
“We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users,” the spokesperson said.
In a revised complaint filed last week, lawyers for the plaintiffs argued that Apple’s marketing amounted to 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.
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