Apple agrees to a £195M million settlement over claims of misleading AI features in iPhones.

Apple has settled a U.S. class-action lawsuit for £195 million ($250 million) after claims it misled customers about artificial intelligence features in iPhones marketed as ready at launch but released later. The agreement covers iPhone 15 Pro and Pro Max models, as well as the full iPhone 16 lineup, with payments of up to £74 ($95) per device for eligible buyers who purchased between June 10, 2024, and March 29, 2025. The lawsuit, filed in March 2025, alleged Apple deceived consumers by advertising advanced 'Apple Intelligence' and Siri upgrades as fully functional when they were still under development. Court documents described claims of 'saturated deceptive ads' across platforms and major events, shaping expectations for features like smarter reminders and memory tools. Apple disputes this, stating its marketing specified features would roll out gradually. The settlement applies to an estimated 37 million devices sold for personal use, excluding resale purchases. Payout amounts may vary based on claim volume and administrative factors, with a judge reviewing the deal for fairness. Apple has not admitted wrongdoing but agreed to settle to avoid prolonged legal proceedings, emphasizing it has already delivered over 20 AI-related features, including writing assistance and image tools. The case highlights broader concerns about how tech companies communicate AI readiness before full deployment. Apple maintains its ads were clear about phased rollouts, while critics argue the marketing created unrealistic consumer expectations. The company’s spokesperson noted its focus on future product development rather than litigation, though the settlement does not address whether Apple’s marketing practices will change. Legal filings describe the deal as 'fair and adequate,' with plaintiffs satisfied the resolution reflects the scope of the claims. Apple continues to defend its approach, arguing iPhones are purchased for reasons beyond software features alone. The settlement now awaits judicial approval before payouts begin.