Apple reaches proposed $250 million settlement over delayed AI features in US class action
A proposed resolution addresses claims that marketing materials created a false expectation that personalised Siri and other capabilities would launch alongside the hardware.
Apple has agreed to a proposed settlement of $250 million to resolve a US class action lawsuit alleging it misled customers about the availability of its Apple Intelligence features. The dispute centres on the assertion that advertising campaigns created a clear and reasonable consumer expectation that capabilities, including a personalised version of Siri, would be functional at the time of purchase. This agreement marks a significant development in the ongoing scrutiny of how major technology firms communicate the utility of their artificial intelligence products to the public.
The proposed settlement applies specifically to owners in the United States who purchased eligible devices, comprising the iPhone 16 lineup and the iPhone 15 Pro, between June 10, 2024, and March 29, 2025. Under the terms of the deal, eligible claimants may receive up to $95 per device, although the exact payout amount is contingent on claim volume and could range as low as $25. The legal team representing the plaintiffs, the Clarkson Law Firm, states that the funds aim to compensate consumers for the discrepancy between the advertised features and the actual product experience at launch.
The lawsuit alleges that Apple's marketing materials offered a significantly limited or entirely absent version of Apple Intelligence, thereby misleading consumers about its actual utility and performance. This contention arose after Apple previewed a suite of AI-powered features, including the personalised Siri, during its June 2024 Worldwide Developers Conference. Despite these previews, the September launch of the iPhone 16 saw the device marketed as "built for Apple Intelligence" while lacking many of the capabilities that had been teased months earlier.
Instead of a full rollout at launch, Apple gradually released new AI features such as Image Playground, Genmoji, and a ChatGPT integration within Siri. The personalised Siri, a key component of the initial marketing pitch, was delayed and is now expected to arrive later this year. This staggered release strategy formed the basis of the legal argument that the company's advertising created an unreasonable expectation of immediate functionality, a claim that previously drew the attention of the National Advertising Division.
Prior to the settlement announcement, regulatory bodies had already flagged issues with Apple's communications. In April, the National Advertising Division recommended that the company discontinue or modify its "available now" claim for Apple Intelligence on its website. Furthermore, Apple had previously removed an advertisement featuring actor Bella Ramsey using the AI-upgraded Siri, acknowledging the friction between its promotional materials and the product's readiness at the time.
The $250 million fund remains proposed and has not yet been finalised by a court, meaning the distribution process is still subject to judicial approval. While Apple has not yet responded to requests for comment regarding the settlement, the agreement represents a substantial financial commitment to address the allegations of misleading advertising. The resolution underscores the increasing regulatory and legal focus on transparency in the marketing of artificial intelligence technologies to investors and consumers alike.
