Apple Settles $250M AI Marketing Lawsuit

Apple has agreed to pay $250 million to settle a class action lawsuit that accused it of marketing Apple Intelligence technologies that "did not exist" yet, according to a court filing.

“The class-action lawsuit, filed in federal court in the Northern District of California on behalf of U.S. consumers, claims that Apple deceived customers by marketing ‘Enhanced Siri features’ that did not yet exist, leading them to buy iPhones based on false advertising,” according to CBS News. “The plaintiffs are seeking a settlement payment of $250 million, according to a recent court filing. If approved by a judge, it could rank among the largest settlements involving Apple.”

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Approximately 37 million iPhone owners in the U.S. are eligible to receive settlement payments, according to the court filing.

“The settlement paves the way for payouts of up to $95 for iPhone users who purchased eligible devices between June 10, 2024, and March 29, 2025,” according to ABC News. “The lawsuit, which was originally filed in March 2025, alleged the iPhone manufacturer ‘violated consumer protection laws when it advertised its new generation of iPhones as a breakthrough in artificial intelligence ('AI'), including significant enhancements to Siri, iPhone's digital assistant.’”

Customers will be notified by email or mail that they can file a claim on a settlement website.

“Apple, based in Cupertino, California, was caught off-guard by the intense consumer interest in the Siri AI features,” according to The Associated Press. “Buyers were angered after finding out that the new features would be released later than expected, the filing said.”

The lawsuit claimed Apple’s products “offered a significantly limited or entirely absent version of Apple Intelligence,” misleading consumers about its actual utility and performance.

“Apple previewed a series of AI-powered features coming to its iPhones during its June 2024 Worldwide Developers Conference, including a more personalized Siri,” according to The Verge. “But when the iPhone 16 launched in September, Apple labeled it as ‘built for Apple Intelligence,’ as it lacked many of the capabilities it teased months earlier.”

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