AI-Powered Siri: Apple Settles False Advertising Lawsuit

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Recent reports from the New York Times indicate that if you purchased an iPhone 16 or specific models of the iPhone 15 between June 2024 and March 2025, you could soon qualify for a refund of up to $95 per device. This potential reimbursement stems from a class action lawsuit concerning the features of Apple Intelligence and its interaction with Siri. The controversial features that are at the heart of this lawsuit were initially included with the iPhone 15 Pro and Pro Max released in June 2024, followed by the launch of the Apple Intelligence-equipped iPhone 16 later that same year.

On Tuesday, Apple reached a settlement regarding claims filed in the U.S. District Court in San Jose, California, concerning allegations of false advertising. The lawsuit contended that Apple misled consumers into believing that the Apple Intelligence suite offered capabilities that were overstated. The total amount of the settlement, pending judicial approval, is set at $250 million.

Apple firmly asserts its innocence in this matter. In a statement to the Times, Marni Goldberg, a representative from Apple, asserted that the company has consistently introduced numerous features across various languages since the launch of Apple Intelligence. She emphasized that Apple aims to maintain its focus on what it excels at: providing the most innovative products and services for its users.

This lawsuit is described as a consequence of Apple’s previous acknowledgment, reported by Axios, that the anticipated AI upgrades to Siri would not be delivered on time. A statement issued to Daring Fireball at that time mentioned that Apple was striving to develop a more personalized version of Siri, which would enhance its understanding of users’ context and allow it to take actions across various apps. However, they admitted that the release of these features would take longer than initially expected, with plans for rollout in the following year.

The day after the settlement, reports emerged indicating that Apple had retracted a controversial advertisement featuring Bella Ramsey:

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This advertisement effectively illustrated the concept of a “more personal” Siri that had yet to be realized. In the ad, we see Ramsey encounter someone whose name they should recall, leading them to ask Siri, “What’s the name of the person I met a couple of months ago at Cafe Grenel?” Viewers are left to assume that this enhanced version of Siri could utilize this prompt to reference, for example, an email, and provide the correct name. It promptly responds, “You met Zac Wingate at Cafe Grenel a couple of months ago.”

To contextualize this class action settlement, it’s worth noting that Apple has faced significant challenges with Siri since the rise of ChatGPT, which set new consumer expectations for AI-powered assistants. Brian Mulberry, a portfolio manager, remarked to the Wall Street Journal in February 2024 that “AI is what most investors are really excited about. Almost all momentum in the market in general is being fueled by AI.” Mulberry expressed concern that “Apple really hasn’t made a big splash in the AI space yet.”

The rollout of Apple Intelligence was perceived as delayed, but it also seemed premature given the subsequent lawsuit and $250 million settlement. In an interview with TechRadar last year, following the discussions regarding Siri’s underperformance, Craig Federighi, Apple’s software chief, explained that the company was developing a “version 2” of Siri that would function in all the personalized ways consumers had come to expect. However, he noted that Apple would no longer publicly provide speculative timelines for the release of this updated version.

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  • Daniel Mercer

    Daniel Mercer is an insightful author and technology enthusiast, known for his engaging contributions to Social Schmuck. With a knack for simplifying complex tech concepts, he covers a wide range of topics, from emerging innovations to the impact of technology on daily life. Daniel is passionate about fostering understanding and dialogue around the ever-evolving digital landscape, making technology accessible and relevant to all readers.

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