Apple settles $250 million over misleading AI feature claims, U.S. users eligible for compensation

Odaily Planet Daily News Apple has agreed to pay $250 million to settle a class-action lawsuit alleging it misled consumers about the AI capabilities of iPhone devices. The lawsuit claimed that Apple exaggerated nonexistent AI features when promoting Apple Intelligence in June 2024, and that the iPhone 16 shipped in September of the same year did not include the promised AI functionalities. Despite denying any wrongdoing, Apple has agreed to compensate U.S. consumers who purchased relevant iPhone 15 and iPhone 16 models between June 10, 2024, and March 29, 2025, with payouts ranging from $25 to $95 per device. The settlement covers approximately 36 million phones sold in the United States. Apple has since announced it will use Google's Gemini to power AI products, including Siri.