By Queenie Wong
Some iPhone users could be eligible to collect up to $95 per device as part of a settlement over allegations that Apple misled consumers about the abilities of its artificial intelligence-powered features.
This week, Apple said it reached a $250-million settlement to resolve class-action lawsuits filed against the Cupertino smartphone maker last year. The lawsuits alleged that Apple violated consumer protection laws by advertising that its iPhones included enhancements to its digital assistant Siri even though it didn’t exist yet. That allegedly enticed consumers to spend more to purchase the new devices.
Ryan Clarkson, founder and managing partner of Clarkson Law Firm, which represented consumers in the lawsuit, said they 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,” he said in a statement.
Apple unveiled several AI tools, including an improved Siri assistant that was more conversational and capable, in 2024. The company touted how AI features will help people write, summarize messages, clean up photos and more.
As the race to advance AI heats up, some experts say that Apple has been lagging behind its rivals such as OpenAI’s ChatGPT and Google Gemini. The settlement is the latest example of the hurdles Apple faces as it goes head-to-head with its competitors.
The settlement applies to U.S. iPhone users who bought an iPhone 16 and the iPhone 15 Pro and iPhone 15 Pro Max between June 10, 2024, and March 29, 2025. Roughly 37 million devices purchased in the United States are eligible, according to a court filing.
A judge in the U.S. District Court for the Northern District of California still needs to approve the settlement.
Consumers will be notified via email or mail about submitting a form to collect the funds. They’ll be eligible for payments of $25 per device but that amount may decrease or increase to $95 per device depending on the amount of claims received and other factors, according to a court filing about the settlement.
Apple said in a statement that its release of what’s known as “Apple Intelligence” included a variety of AI-powered features such as live translation and writing tools.
“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,” a company spokesperson said in a statement.
Feature image credit: Ted Shaffrey / Associated Press
By Queenie Wong
Sourced from yahoo! finance
This story originally appeared in Los Angeles Times.
