Key insights
- Apple has agreed to a $250 million settlement over claims of misleading advertising regarding its AI features. The lawsuit, filed in March 2025, alleges deceptive ads drove iPhone sales. Eligible iPhone 15 Pro/Pro Max and iPhone 16 buyers between June 2024 and March 2025 could receive payouts. While not an admission of wrongdoing, the settlement introduces a minor negative sentiment around Apple's marketing practices and AI development transparency.
%3Amax_bytes(150000)%3Astrip_icc()%2FGettyImages-2260718924-d261c559463e41d5a62d4e7ab8af4693.jpg&w=3840&q=75)
Get personalized, AI-powered answers built on 27+ years of trusted expertise.
Some people who bought iPhones in recent years could get a payment from Apple soon.
Apple has agreed to pay a $250 million settlement to resolve a class action lawsuit over claims it misled consumers with some of its ads in recent years.
The lawsuit, filed in March 2025, alleged that Apple (AAPL) misled millions of iPhone buyers with ads about its Apple Intelligence features, which were first announced at Apple's developers conference in June 2024. The iPhone maker and the parties that brought the lawsuit filed a motion to get a preliminary approval of the settlement this week, without Apple admitting it did anything wrong.
The suit alleged that Apple "saturated the market with deceptive ads" that drove sales by misleading consumers into thinking that features such as an AI-enhanced Siri either were already available, or would be released soon. However, Apple has delayed some AI updates, including the upgraded Siri.
Apple did not immediately respond to an Investopedia request for comment on the settlement.
Millions of iPhone owners could be eligible for a payment soon as part of the settlement.
The suit cited a decision from the Better Business Buearu's National Advertising Division in April 2025, which said that Apple should "modify or discontinue advertising claims regarding the availability" of certain AI features.
The settlement agreement estimates that eligible buyers of the iPhone 16 line of phones along with the iPhone 15 Pro and Pro Max between June 10, 2024 and March 29, 2025, could include about 37 million devices. That would mean average payouts could range between $25 and $95, depending on how many people file claims.
A hearing to decide whether the settlement is approved is scheduled for June 17.
Get personalized, AI-powered answers built on 27+ years of trusted expertise.