Apple sued for $250 million for AI advertising fraud! iPhone 15 and 16 purchased during a specific period can get up to $95 each.

Apple Agrees to Pay $250 Million to Settle False AI Advertising Claims. Consumers in the U.S. Who Purchase iPhone 15 Pro or 16 Series During a Specific Period May Receive Up to $95 Per Device.

Apple to Pay $250 Million for Deceptive AI Promotions, U.S. Consumers Eligible for Compensation

Apple recently settled multiple lawsuits over misleading advertising of iPhone AI features, agreeing to pay $250 million to resolve the class-action suits.

According to CNET, under the settlement agreement, any consumer residing in the United States who purchased the following models between June 10, 2024, and March 29, 2025: iPhone 16 series, iPhone 16e, iPhone 15 Pro, or iPhone 15 Pro Max, can participate in the distribution of the $250 million settlement fund.

Eligible devices will initially be compensated $25 each, with the final amount depending on the total number of claims filed, up to a maximum of $95 per device.

Deceptive AI Promotions Spark Controversy, Regulators and Plaintiffs Say Features Were Not Ready

Apple faces accusations of misleading consumers primarily due to marketing tactics. Plaintiffs allege that Apple promoted AI features that did not exist at the time, do not exist now, and will not exist for the next two years or longer, in an effort to boost iPhone sales.

Apple announced over two years ago that it would launch a more personalized version of Siri, but the feature has yet to be fully released. The U.S. Federal Trade Commission’s National Advertising Division also concluded that Apple falsely implied that the AI-powered new Siri was already available.

Ryan Clarkson, a lawyer representing consumers, said, “It’s an honor to secure this settlement for consumers. People should be protected when they decide to spend their hard-earned money.” He emphasized that we are at a turning point in generative AI technology, and the choices made by companies and regulators now will shape how this technology impacts everyday life in the future.

Enhanced Siri Promises Unfulfilled, Waiting for iOS 27

The promised upgraded version of Siri has not yet materialized.

Apple announced in January 2025 that it would adopt Google’s Gemini AI model and cloud technology to upgrade its device-side assistant. Rumors predicted this upgrade would arrive in February, but it ultimately did not happen. Google later confirmed that the upgrade would be launched by the end of 2026.

Bloomberg’s latest report states that at the June conference this year, Apple plans to publicly introduce support for third-party AI models in iOS 27, iPadOS 27, and macOS 27, allowing users to choose third-party AI models to power Siri, writing tools, and image playgrounds, with third-party AI providers also able to join support via the App Store.

The report also revealed that Apple is internally testing models from Google and Anthropic, and Siri driven by different AI models can be further customized with different voices.

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Apple iOS 27: 5 New Features Leaked, Users Can Choose Gemini, Claude?

Compensation Seems Massive but Only a Drop in the Bucket Compared to Quarterly Profits

In addition to the AI advertising fraud case, Apple also faced a settlement years ago over Siri recording incidents.

The case was settled for $95 million, but each user only received a small amount—like a pizza slice. While the $95 million settlement was not insignificant, for Apple it was equivalent to nine hours of profit. During that fiscal year, Apple’s net income reached $93.74 billion.

• Related article: Siri secretly recorded private conversations! Apple pays $95 million, but each user only gets breakfast money?

Now, Apple is settling with consumers for $250 million, but according to its latest financial report, its quarterly net income as of March 28, 2026, reached $8B. The settlement amount accounts for only 0.8% of that quarter’s net income, indicating that even with a large settlement, the overall financial impact remains limited.

Image source: Apple’s latest financial report