Apple Agrees to $250M Settlement Over Alleged AI Advertising Claims for iPhones
Apple’s push to market the future of artificial intelligence has now landed the tech giant in the middle of a massive legal settlement. The company agreed to pay $250 million to resolve claims that it misled millions of consumers about advanced AI features tied to Siri and its “Apple Intelligence” rollout.
The proposed settlement stems from a class-action lawsuit accusing Apple of advertising enhanced Siri capabilities that either did not yet exist or were far less developed than consumers were led to believe. Plaintiffs argued the company promoted features as available while heavily marketing the iPhone 16 lineup in 2024.
Apple denied wrongdoing as part of the agreement, saying it settled the case to remain focused on delivering innovative products and services. Still, the settlement could affect roughly 36 to 37 million eligible devices sold in the United States between June 2024 and March 2025.
Lawsuit Claimed Apple Advertised Features That Didn’t Exist
At the center of the lawsuit were Apple’s highly promoted AI upgrades for Siri, which the company presented as a major leap forward in personalized digital assistance. Consumers were allegedly led to expect features such as enhanced contextual awareness, smarter reminders, and AI-powered task management.
According to court filings, plaintiffs claimed Apple promoted capabilities that “did not exist at the time, do not exist now, and will not exist for two or more years.” The complaint argued the advertising campaign convinced many consumers to upgrade their devices, specifically for those promised features.
The Better Business Bureau’s National Advertising Division also reportedly concluded that Apple’s marketing may have created the impression that the upgraded Siri tools were already available. Apple later delayed some of the anticipated AI features and quietly pulled certain advertisements tied to the rollout.
Some iPhone Owners Could Receive Payments Up to $95
Under the proposed settlement, eligible customers could receive compensation ranging from $25 to as much as $95 per device, depending on how many valid claims are ultimately submitted.
The settlement applies to U.S. consumers who purchased eligible iPhone models between June 10, 2024, and March 29, 2025. Covered devices include all iPhone 16 models as well as the iPhone 15 Pro and iPhone 15 Pro Max.
Consumers will reportedly be notified through email or mail if they qualify to submit a claim. Court filings also state that a dedicated settlement website is expected to launch in the coming weeks with instructions, deadlines, and additional eligibility details.
Apple Faces Growing Pressure in the AI Race
The settlement arrives as Apple faces increasing pressure to compete with rivals like Google, Samsung, OpenAI, and Anthropic in the rapidly evolving AI market. While competitors have aggressively rolled out generative AI tools and smart assistants, Apple has struggled to convince some analysts that it is keeping pace.
Despite criticism surrounding Siri’s delayed upgrades, Apple maintains that it has already introduced dozens of AI-powered features through Apple Intelligence, including tools such as Live Translation, Visual Intelligence, Writing Tools, and Genmoji. Company representatives argued that consumers buy iPhones for many reasons beyond enhanced Siri capabilities alone.
The case may ultimately become a defining moment for how technology companies market artificial intelligence products moving forward. As AI competition intensifies, regulators, consumers, and investors are paying closer attention to whether companies are delivering the futuristic capabilities they promise in advertising campaigns.