Apple Agrees to $250 Million Settlement Over AI Marketing

Apple Inc. agreed to pay up to $250 million to settle a U.S. class-action lawsuit alleging the company misled consumers regarding the artificial intelligence capabilities of its iPhone 16 and iPhone 15 Pro models. The lawsuit, filed in the Northern District of California, accused Apple of using a "bait and switch" marketing strategy by promoting advanced Siri features—including personal context awareness and cross-app actions—that were not functional at the time of the devices' release.

Eligible U.S. consumers who purchased an iPhone 16 or an iPhone 15 Pro/Pro Max between June 10, 2024, and March 29, 2025, may receive payments ranging from $25 to $95 per device. The settlement covers approximately 37 million devices. A Better Business Bureau investigation supported the claims, finding that Apple had advertised Siri as "available now" when the features were actually delayed.

Apple denies any wrongdoing and maintains that AI features are delivered over time. The company stated it resolved the matter to remain focused on delivering innovative products and services. The settlement is pending approval by Judge Noel Wise of the U.S. District Court for the Northern District of California, with a hearing scheduled for June 17, 2026. A claims-submission website is expected to launch within a few weeks.