Apple settles a consumer class action for $250 million, with compensation of up to $95 per person

Apple is facing a class action lawsuit after being accused of running misleading advertising for its artificial intelligence (AI) feature, “Apple Intelligence.” Apple has agreed to pay $250 million (about NT$8.1 billion) to settle, Reuters reported. If the court ultimately approves the case, during a specified period, iPhone users who purchase designated models can receive up to $95 in compensation per device.

Apple’s $250 million settlement over allegedly misleading AI ads

The class action lawsuit, initially filed in March 2025 by consumers, accuses Apple of marketing its new generation of iPhones as a major breakthrough in artificial intelligence—particularly by emphasizing a significant upgrade to the digital assistant Siri—thereby violating consumer protection laws. The complaint states that Apple heavily promoted a so-called “upgraded Siri” feature, such as AI-driven digital assistant memory capabilities and calendar reminders, but these features did not actually exist at the time.

The plaintiffs further allege that Apple used advertisements—both online and during major broadcast events—with false content to attract market attention, causing the public to believe that Siri already had the above advanced AI features, which in turn prompted consumers to buy iPhones.

Compensation applies only to U.S. residents

This $250 million settlement agreement will provide meaningful compensation to affected consumers. Court documents state that the settlement funds will be determined based on the number of claims and other factors, with each class member’s device potentially eligible for up to $95. The case applies to consumers who lived in the United States from June 10, 2024 to March 29, 2025 and purchased iPhones in the U.S. Eligible models include iPhone 16, iPhone 16e, iPhone 16 Plus, iPhone 16 Pro, iPhone 16 Pro Max, as well as iPhone 15 Pro and iPhone 15 Pro Max.

Apple’s official response: Features are released in phases; no misleading statements

Despite agreeing to pay the large settlement amount, Apple still insists in its court filings on Tuesday that its ads did not mislead the public. Apple emphasized that it disclosed from the beginning that Apple Intelligence features would be rolled out gradually over time and would continue to evolve. In addition, Apple argued in the documents that it has successfully delivered more than 20 Apple Intelligence features, and that consumers’ reasons for buying a new iPhone are quite diverse and not absolutely tied to the upgraded Siri feature.

This article Apple’s $250 million settlement resolves a consumer class action lawsuit; each person can receive up to $95 in compensation first appeared on Chain News ABMedia.