Apple has agreed to settle a lawsuit for $250 million after advertising Apple Intelligence as an included AI system while customers failed to receive the full functionality. Users in the United States who purchased iPhone 16 and iPhone 15 Pro between June 2024 and March 2025 will be eligible to claim compensation, with each phone receiving between $25 to $95 in refunds.
The main issue is that when iPhone 16 launched, Apple claimed the features were "exclusively built for Apple Intelligence," but the advertised AI capabilities were not immediately available. Consumers argued that Apple's advertisements were misleading, failing to deliver the full AI capabilities they expected. Apple rolled out features like Genmoji and ChatGPT integration in Siri gradually, and also delayed the release of a more advanced Siri version.
Due to these false advertising claims, the National Advertising Division (NAD) urged Apple to modify its "available immediately" language in advertisements, and Apple also had to withdraw an advertisement featuring actress Bella Ramsey. Although Apple has not formally admitted fault, the company decided to pay hundreds of millions of dollars to avoid facing the longest legal battle to settle the case.
Ref: The Verge
