Apple pays $250 million in compensation for AI advertising fraud! For iPhone 15 and iPhone 16 purchased during a specific period, each unit can receive up to $95.

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 Can 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 eligible for a $25 payout, with the final amount depending on the total number of claims filed, with a maximum of $95 per device.

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

Apple is accused of misleading consumers primarily through marketing tactics. Plaintiffs allege that Apple promoted AI features in advertisements that either did not exist at the time, do not exist now, or will not exist for the next two years or longer.

Over two years ago, Apple announced plans to launch a more personalized version of Siri, but this 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 upgraded Siri promised by Apple has not yet materialized.

In January 2025, Apple announced it would adopt Google’s Gemini AI model and cloud technology to upgrade device-side assistants. 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, Apple is expected to publicly introduce support for third-party AI models in iOS 27, iPadOS 27, and macOS 27, enabling Siri, writing tools, and image playground features to be driven by user-selected third-party AI. Third-party AI providers will also be able to join support via the App Store.

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

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

Compensation Seems Astronomical but Only a Drop in the Bucket of Quarterly Profits

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

That case was settled for $95 million, but each user only received a small amount of money—like a slice of pizza. While the $95 million settlement was significant, for Apple it was equivalent to just nine hours of profit. In that fiscal year, Apple’s net income reached $93.74 billion.

• Related Report: Siri Secretly Recording Private Conversations! Apple Settles for $95 Million, Only Giving Users 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, was $8B. The settlement amount accounts for only 0.8% of that quarter’s net income, indicating that even a large settlement has limited impact on its overall financial health.

Image source: Apple’s latest financial report