Apple has agreed to pay $250 million to settle a class action lawsuit alleging it misrepresented the availability of Apple Intelligence features . The proposed settlement applies to users in the U.S. who purchased all iPhone 16 and iPhone 15 Pro models between June 10, 2024 , and March 29, 2025. The case is a landmark in the legal liability of tech giants for their advertising practices, setting a precedent for protecting consumers from misleading promises about artificial intelligence features .
The case is part of a broader legal challenge facing Apple over Siri. The company previously agreed to a $95 million in Lopez v. Apple Inc., which alleged unauthorized recordings of private conversations by Siri between September 2014 and December 2024.The total of $345 million in settlements over 18 months highlights the severity of the company’s AI and privacy issues.
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The new settlement, of course, has to do with the delayed release of AI features and an upgraded Siri. Apple introduced some AI features to the iPhone 16 a few weeks after its launch, but delayed the launch of the more personalized Siri, which is expected to arrive later this year. In April, the National Advertising Division recommended that Apple “discontinue or modify” its claim that Apple Intelligence features are “available now.” Apple also pulled an iPhone 16 ad that showed actress Bella Ramsey using the AI-enhanced Siri . The actions reveal the depth of the problem, as the company was forced to radically overhaul its communications strategy after regulators intervened.
Market impact of the Apple Intelligence settlement
Apple Intelligence ’s $250 million settlement for misleading advertising represents one of the largest false advertising settlements in the technology industry. The case sets a legal precedent that shows that companies cannot use ambitious marketing for unavailable features without legal consequences. The settlement amount is significantly larger than similar cases in the past, reflecting the growing sensitivity of courts and regulators to misleading practices by technology companies.
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The delay in delivering promised AI has allowed competitors like Google and Samsung to gain market share with functional AI assistants. Google Assistant has AI capabilities into the Android, while Google has invested heavily in integrating Gemini AI. Meanwhile, Samsung with Bixby and Microsoft with Copilot have made substantial improvements to their own systems, taking advantage of the gap left by Apple's delays.
Consumers affected by the misleading advertising can seek compensation through the settlement. According to The Verge, Apple did not immediately respond to a request for comment about the settlement. Eligible users can expect compensation that will depend on the number of devices they purchased and the period of their purchase.
Consumer protection
To protect against future misleading technology product advertisements, consumers should carefully consider feature availability before purchasing. In particular, it is important to distinguish between features that are “available now” and those that will be delivered “soon” or “in the future.” Companies often use vague language in their advertisements, and consumers should look for official statements of availability and release timelines. Additionally, following independent technology reviews and verifying claims through multiple sources can protect against similar situations.
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The case highlights the growing need for transparency in advertising artificial intelligence features. Tech companies face pressure to deliver promised features at or near launch, rather than relying on future upgrades.
