On Tuesday, Apple reached an agreement to pay $250 million to resolve a class-action lawsuit that claimed the company misled iPhone customers regarding the artificial intelligence features of its Siri voice assistant, which were alleged to be overstated as of late 2024.
The lawsuit accused the tech giant, based in California, of advertising AI functionalities that were either nonexistent at the time or still not available, and would not be realized for at least two years, in an effort to enhance iPhone sales. Despite announcing a more “personalized” version of Siri nearly two years ago, Apple has yet to fully launch this upgraded service.
The National Advertising Division of the Better Business Bureau, which oversees advertising practices in the U.S., also determined that Apple misleadingly implied the new AI-enhanced Siri was “available now.”
The proposed settlement, submitted for court approval on Tuesday, does not involve any admission of guilt from Apple. It covers approximately 36 million eligible devices, including the iPhone 16 and the iPhone 15 Pro and 15 Pro Max, purchased in the U.S. between June 10, 2024, and March 29, 2025.
“We resolved this matter to remain focused on what we do best: delivering the most innovative products and services to our users,” Apple stated in a comment to the Financial Times.
Each individual affected by the settlement may receive $25 per device, with the total potentially increasing to $95 depending on the number of claims approved.
Ryan Clarkson, founder and managing partner of Clarkson Law Firm, which initiated the lawsuit on behalf of consumers, expressed pride in securing a significant settlement. He emphasized that consumers should feel confident and safeguarded when choosing where to spend their money. “We are at a pivotal moment with AI, and the decisions made by companies and regulators now will influence how this technology affects everyday lives,” he added.
A survey by Morgan Stanley referenced in the complaint highlighted that potential iPhone buyers were particularly excited about the “enhanced Siri” feature.
In 2024, Apple had launched an extensive advertising campaign to promote these capabilities but later confirmed the delay in their release and retracted its advertisements.
The settlement is pending approval from Judge Noël Wise in the federal district court for the northern district of California, with a hearing scheduled for June 17.
