Deceptive Advertising: Apple agrees to pay $250m settlement over Siri AI features

*Consumers, in a class-action suit, in the United States, allege Apple ‘aggressively marketed a more advanced, personalised Siri experience’ that was not actually available when its iPhone 16 devices were launched in 2024

Isola Moses | ConsumerConnect

Apple, one of the global technology giants, has agreed to pay $250 million to settle a class-action lawsuit.

The legal action had accused the the Big Tech of misleading digital consumers about the capabilities of Apple’s Artificial Intelligence (AI)-enhanced Siri assistant.

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ConsumerConnect gathered that if approved, it would be one of the largest consumer-related settlements in the company’s history.

The lawsuit centered on Apple’s rollout of “Apple Intelligence”, the company’s Artificial Intelligence platform introduced alongside the iPhone 16 lineup 2024.

How Apple misled consumers

Consumers, in the class-action suit, also alleged that Apple aggressively marketed a more advanced, personalised Siri experience that was not actually available when the devices launched few years ago.

Court filings further showed the settlement would apply to consumers in the United States (US), who purchased eligible iPhone 15 Pro, iPhone 15 Pro Max, or iPhone 16 models between June 10, 2024, and March 29, 2025, according to report.

It is also noted that depending on how many claims are filed, consumers could receive payments ranging from $25 to as much as $95 per device.

Apple though denied wrongdoing, the company agreed to settle the claims to avoid prolonged litigation in the court of law.

The tech company, in a statement, also said it wanted to remain focused on “delivering the most innovative products and services” to consumers.

Why consumers sued

The complaint argued that Apple created unrealistic expectations by advertising Siri features that either arrived much later than promised or had not yet launched at all.

Plaintiffs further claimed they purchased expensive new iPhones, believing the AI functionality would be immediately available.

The lawsuit also cited findings from the BBB National Programmes’ National Advertising Division, which reportedly concluded that Apple’s marketing language — including claims that Apple Intelligence was “available now” — could mislead consumers into thinking the upgraded Siri experience was already active.

Apple did release some AI features over time, including Genmoji, writing tools, and ChatGPT integration, report said.

However, the company delayed the more ambitious Siri overhaul, frustrating some customers, and fuelling criticism that the company announced capabilities before they were ready for consumers.

Implication for iPhone consumers

The agreed $250 million settlement could become an important test case for how technology companies’ market Artificial Intelligence products, according to report.

Meanwhile, consumer advocates have said the lawsuit against Apple demonstrates the need for clearer disclosures when companies advertise future AI capabilities.

As AI becomes a major selling point for smartphones and other electronics, regulators and courts may increasingly scrutinise whether advertised features are fully functional at launch or otherwise.

For consumers, the case is also a reminder to treat “coming soon” technology claims cautiously.

Many AI tools are still evolving, and companies sometimes announce features months before they are ready for widespread use, report stated.

The proposed settlement still requires court approval before payments could be distributed to affected consumers, report added.

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