Apple has agreed to a multi-million dollar payout to terminate a class action lawsuit that accuses them of misleading people about Artificial Intelligence features of the Iphone.
In court documents filed in federal court in California, the tech company was accused of using AI-led marketing to drive demand for its latest devices.
“AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years,”
The lawsuit alleged the promotion overstated what customers could actually use, including claims tied to Apple’s more ‘personalized’ version of Siri, which has still not launched. The plaintiffs argued that this messaging encouraged millions of people to buy iPhones under the impression those capabilities were already available.
Although Apple has agreed to the settlement, the company has not conceded any fault. The payment is intended to bring the case—first filed last year—to a close.
Under the proposed terms, Apple would pay a total of $250 million. Eligible US customers who purchased an Iphone 15 or Iphone 16 between June 2024 and March 2025 could receive an estimated $25 to $95 each.
“Apple has reached a settlement to resolve claims related to the availability of two additional features.
“We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.”
The agreement, which still includes no admission of wrongdoing, is said to cover roughly 36 million devices.
Attorneys involved in the claim argue Apple’s AI advertising crossed the line into false marketing.
They told the BBC they believe Apple’s approach was driven by pressure to ‘catch up’ in the wider competition among major tech firms, following widely publicized breakthroughs from Anthropic and OpenAI.
The case was brought by Clarkson Law Firm.
“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.”
Clarkson Law Firm have been approached for additional comment.
The settlement is not final yet. It must still be signed off by Judge Judge Noël Wise of the federal district court for the northern district of California.
A hearing has been scheduled for 17 June.