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How to Collect on Apple's $250 Million AI iPhone Settlement

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Why This Matters

This settlement highlights the importance of transparency in advertising, especially when it comes to new AI features in consumer devices. For consumers, it offers a chance to recover some costs if they purchased affected iPhones, emphasizing the need for accountability in tech marketing. The case also underscores the evolving landscape of AI integration and the scrutiny it faces from regulators and users alike.

Key Takeaways

If you purchased an iPhone 16 or iPhone 15, eager to try out all the new Apple Intelligence features the company had previewed during its announcement, you might be able to get some money back because those features didn't materialize on time.

Depending on what Apple announces at its upcoming Worldwide Developers Conference, you might even see the cash before some of the features.

Apple this week settled a shareholder lawsuit and agreed to pay $250 million to customers who bought the iPhone 16 and some iPhone 15 models during a specified period. The lawsuit alleged that Apple misled customers by promising AI features that didn't ship when the new devices did. Payouts between $25 and $95 per eligible device are expected.

In a statement to CNET Managing Editor David Lumb, an Apple spokesperson said, "Apple has reached a settlement to resolve claims related to the availability of two additional features. We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users."

Why is there a lawsuit over Apple Intelligence?

When Apple advertised its new iPhone 16 line of phones, it emphasized how they were optimized for AI features such as an enhanced Siri that could act as an intelligent agent. When the phones did arrive, Apple Intelligence wasn't yet ready; its first features didn't arrive until iOS 18.1 five weeks later.

According to the proposed settlement, "Apple allegedly saturated the market with deceptive ads, inducing consumers to purchase iPhones based on the promise of certain enhanced Siri features."

Some features of Apple Intelligence did ship soon after the introduction of the iPhone 16 and iOS 18, including Visual Intelligence, Live Translation, Writing Tools, Genmoji and Clean Up. But those weren't the advanced features Apple highlighted.

Who is eligible for the $250 million settlement?

Customers who purchased one of the following devices between June 10, 2024, and March 29, 2025, are eligible to receive a settlement payment:

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