Apple on Tuesday agreed to pay $250m to settle a class-action lawsuit accusing it of misleading millions of iPhone buyers by falsely touting artificial intelligence capabilities for its Siri voice assistant in late 2024.
Plaintiffs accused the California tech company of having “promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years” in order to boost iPhone sales, according to the suit. Apple’s more “personalized” version of Siri still has not been fully released despite its announcement nearly two years ago.
The Better Business Bureau’s National Advertising Division, the US advertising watchdog, had also concluded that Apple falsely suggested the new AI-powered Siri was “available now”.
The settlement filed Tuesday for court approval, which includes no admission of wrongdoing by Apple, covers roughly 36m eligible devices – the iPhone 16, as well as the iPhone 15 Pro and 15 Pro Max – bought in the US from 10 June 2024 to 29 March 2025.
“We resolved this matter to stay focused on what we do best: delivering the most innovative products and services to our users,” Apple told the Financial Times.
Each class member could receive $25 per device, a sum that could reach $95 depending on the number of approved claimants.
“We 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,” said Ryan Clarkson, founder and managing partner of Clarkson Law Firm, which brought the suit on behalf of consumers. “We are at an inflection point with AI, and the choices companies and regulators make now will shape how this technology impacts everyday people.”
A Morgan Stanley survey cited in the complaint indicated that “enhanced Siri” was the feature that potential iPhone buyers most anticipated.
Apple had launched a major advertising campaign in 2024 to promote these capabilities, before confirming their indefinite delay and pulling its ads.
The settlement must still be approved by Judge Noël Wise of the federal district court for the northern district of California at a hearing set for 17 June.