Apple faces a $250 million settlement over AI advertising fraud! For iPhone 15 and iPhone 16 purchased during a specific period, each phone can receive up to $95.

Apple agrees to pay $250 million to settle false claims made in connection with its AI features. Consumers in a specific period who bought an iPhone 15 Pro or the 16 series in the U.S. can receive up to $95 in compensation per device.

Apple to pay $250 million over deceptive AI promotions; U.S. consumers eligible for compensation

Apple has recently reached a settlement in multiple lawsuits brought over misleading consumers about iPhone AI features, and agreed to pay $250 million to resolve the related class-action cases.

According to CNET, under the settlement agreement, as long as consumers reside in the United States and purchase the following models between June 10, 2024, and March 29, 2025—iPhone 16 series, iPhone 16e, iPhone 15 Pro, or iPhone 15 Pro Max—they can participate in the distribution of the $250 million settlement fund.

Initially, each eligible device can receive $25 in compensation, and the final amount will depend on the total number of people who submit claims, with a maximum payout capped at $95 per device.

Deceptive AI promotions spark controversy; regulators and plaintiffs say the promised features weren’t ready

Apple is accused of misleading consumers, mainly due to its marketing tactics. Plaintiffs allege that Apple, to boost iPhone sales, advertised AI features that did not exist at the time, do not exist now, and even won’t exist over the next two years or longer.

Apple announced it would roll out a more personalized version of Siri nearly two years ago, but the feature has still not been fully released. The U.S. advertising regulator’s National Advertising Division also concluded that Apple incorrectly implied that the AI-powered new Siri was already live.

Ryan Clarkson, a lawyer representing consumers, said he is honored to secure this settlement for consumers, adding that consumers should be protected when deciding to spend their hard-earned money. He emphasized that the industry is currently at a turning point in generative AI technology, and that the choices made by companies and regulators now will shape how this technology will affect everyday people’s lives in the future.

Enhanced Siri promise yet to be fulfilled; waiting for iOS 27

The enhanced Siri Apple promised has still not materialized.

In January 2025, Apple announced that it would use Google’s Gemini AI model and cloud technology to power an upgrade to the on-device assistant. At the time, leaks predicted that the upgrade would arrive in February, but it ultimately did not happen; later, Google confirmed that the upgrade would be released by the end of 2026.

Bloomberg’s latest report says Apple expects to publicly add the ability for users to choose third-party AI models to power Apple Intelligence features such as Siri, writing tools, and Image Playground in iOS 27, iPadOS 27, and macOS 27 at this June’s event, and that third-party AI providers will also be able to join the support lineup via the App Store.

The outlet also claims Apple is running internal tests of models from Google and Anthropic, and that Siri powered by different AI models can be further configured with different voices.

Related report:
Apple iOS 27: 5 New Features Leaked—Take a Look First; Can Users Also Choose Gemini and Claude?

Although the compensation sounds astronomical, it’s only a drop in the bucket of quarterly profits

In addition to the AI feature promotional fraud case, Apple was also ordered to pay compensation years ago for the Siri recording incident.

The case was ultimately settled for $95 million, but each user only received enough for one pizza. Although the $95 million awarded back then was certainly not a small amount, for Apple it amounted to nine hours of operating profit. In that fiscal year, Apple’s net income reached $93.74 billion.

• **Related report:**Siri secretly recorded private conversations! Apple ordered to pay $95 million—each user only gets enough for breakfast?

Now Apple is settling with consumers for $250 million, but according to the company’s latest financial report, as of March 28, 2026, quarterly net income reached $29.578 billion, and the settlement amount accounts for only 0.8% of that quarter’s net income—showing that even in the face of a large settlement, the real impact on its overall finances remains limited.

Image source: Apple’s latest financial report