Apple agreed to compensate a total of $250 million (£184 million) to a number of iPhone customers, for the purpose to sort out a lawsuit claiming that the business deceived the users about new artificial intelligence (AI) features as well as capabilities.
Apple agreed to a settlement that will settle claims in a sizable consolidated class action case launched last year, but it did not acknowledge any wrongdoing in the resolution that was submitted on Tuesday to a federal court in California.
The lawsuit claimed that Apple was misrepresenting its artificial intelligence (AI) features in the iPhone, which it dubbed Apple Intelligence, including an improvement to its Siri speech assistant.
US consumers who purchased an iPhone 15 or iPhone 16 between June 2024 and March 2025 will receive payment from Apple ranging from $25 to $95 depending on the number of approved claimants.
Ryan Clarkson, founder and managing partner of Clarkson Law Firm, which brought the suit on behalf of consumers said that:
“We are proud to secure a historic settlement on behalf of consumers who should feel confident and protected when deciding where to spend their hard-earned dollars. We are at an inflection point with AI, and the choices companies and regulators make now will shape how this technology impacts everyday people.”
The case, according to an Apple representative, was centred on “the availability of two additional features” among a number of capabilities made available as part of the company’s rollout of Apple Intelligence.
She said:
“We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users”.
Attorneys claimed that Apple’s marketing around new AI functions amounted to deceptive advertising in an amended lawsuit submitted last week for the consolidated class of iPhone buyers.
Lawyers wrote:
“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.”
In addition they also stated that Apple launched this AI-focused campaign in an effort to catch up in the Big Tech competition for cutting-edge technology being spearheaded by startups like Anthropic and OpenAI.
Over the course of time, Tim Cook, the outgoing CEO of the Apple, is being critisized for not being creative enough with products of Apple.
However, it allegedly misrepresented Apple Intelligence’s ability to provide iPhone users with an improved version of Siri that would turn it from a “limited voice interface into a full-fledged personal AI assistant”.
The lawyers wrote:
“The iPhone 16 was delivered to consumers without “Apple Intelligence,” and Enhanced Siri never came.”
