Apple agrees to $US250m settlement over iPhone AI advertising claims

Apple has agreed to pay $US250 million ($A384 million) to settle a United States class-action lawsuit that accused the company of saturating the market with advertisements for Apple Intelligence features that were not available when its latest iPhones went on sale.

The settlement covers anyone who bought an iPhone 16, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max, iPhone 15 Pro, or iPhone 15 Pro Max between 10 June 2024 and 29 March 2025. Australian consumers who purchased any of those models during the window — through Apple’s Australian online store, JB Hi-Fi, or carriers including Telstra and Optus — are eligible to submit a claim. At launch, the six models sold in Australia from $A1,399 through to $A2,849, putting tens of thousands of local buyers within the class.

Filed in a California federal court in March 2025, the class action alleged that Apple’s marketing implied enhanced Siri capabilities, on-screen awareness, and personalised reminder tools were ready at launch. Most of those features did not ship until weeks or months later. A smarter Siri with contextual understanding, the ability to carry out tasks across apps, and a memory-like tool that surfaced relevant information from photos and messages were among the capabilities held back.

“Apple allegedly saturated the market with deceptive ads, inducing consumers to purchase iPhones based on the promise of certain enhanced Siri features,” the court filing stated.

Apple did not admit wrongdoing and described the settlement as a pragmatic step. “We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users,” a company spokesperson said. But the company maintains its advertising made clear the features would roll out over time, and it notes more than 20 Apple Intelligence capabilities have since shipped.

For individual claimants, the payout is expected to range from $US25 to $US95, depending on how many claims are filed. With an estimated 36 to 37 million eligible devices in circulation — a figure drawn from court documents — payments will sit at the lower end of that band if most owners participate.

A final approval hearing is scheduled for 17 June 2026 in a US district court. Once preliminary approval is granted, eligible Australian buyers can register for notification through the settlement administrator’s website.

The case lands amid intensifying scrutiny of how technology companies advertise generative AI. In April 2025, the Better Business Bureau’s National Advertising Division directed Apple to modify or discontinue certain claims about the availability of AI features. Apple said it would appeal that ruling.

Australians who bought a qualifying iPhone directly from Apple’s local store will have their device serial numbers tied to the purchase, simplifying the claim process. Those who bought through a carrier or retailer should locate their original receipt.