Apple hit with lawsuit over ‘false advertising’ of Apple Intelligence features

Apple hit with lawsuit over ‘false advertising’ of Apple Intelligence features

  • 20.03.2025 23:43
  • 9to5mac.com
  • Keywords: false advertising, AI

Apple is sued for false advertising over its delayed Apple Intelligence features in iPhone 16, including Siri and Image Playground, misleading consumers about advanced AI capabilities.

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Estimated market influence

Apple

Apple

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Analyst rating: Buy

Apple is facing a lawsuit for false advertising related to its Apple Intelligence features, which were heavily marketed but delayed. The company's role is as the defendant in this legal action.

Google

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Analyst rating: N/A

Google is mentioned as being sued by the same law firm over AI practices, indicating potential negative implications for its market position and reputation.

OpenAI

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Analyst rating: N/A

OpenAI is also facing legal action from the same plaintiffs who are suing Apple and Google, which could affect its standing in the AI community.

Context

Analysis and Summary: Apple Lawsuit Over False Advertising of Apple Intelligence Features

Lawsuit Overview

  • Apple is facing a federal lawsuit alleging false advertising and unfair competition related to its marketing of Apple Intelligence features.
  • The lawsuit was filed in the U.S. District Court in San Jose by the Clarkson Law Firm, which has previously sued Google and OpenAI over AI practices.

Key Allegations

  • False Promises: Apple advertised transformative features like Image Playground, Genmoji, and a more personalized Siri as part of Apple Intelligence.
  • Delayed Rollout: The lawsuit claims Apple failed to deliver these features as promised, despite heavy marketing in 2024.
  • Consumer Expectations: Plaintiffs argue that Apple’s ads created a reasonable expectation among consumers that these features would be available at launch.
  • Premium Pricing: Apple allegedly used these overstated AI capabilities to drive upgrades at premium price points.

Apple’s Response

  • Ad Removal: Apple removed the ad for the more personalized Siri from YouTube after delaying the feature.
  • Disclaimer Addition: Added disclaimers to its website about feature availability.
  • Ongoing Issues: Plaintiffs claim Apple has not retracted all false representations or taken adequate steps to remedy harmed consumers.

Market Impact

  • Consumer Trust: The lawsuit raises concerns about consumer trust in Apple’s marketing and premium positioning.
  • Potential Damages: Damages are unspecified but could be significant given the scale of the marketing campaign.
  • Regulatory Scrutiny: The case may prompt increased scrutiny of AI-related advertising practices across the tech industry.

Competitive Landscape

  • AI Marketing Practices: This lawsuit highlights the risks of overpromising AI capabilities, a trend also seen in lawsuits against Google and OpenAI.
  • Transparency Pressure: Competitors like Google and Microsoft (via OpenAI) may face increased pressure to ensure their AI marketing is accurate.

Long-Term Implications

  • Strategic Risks: Overstating AI capabilities could harm Apple’s reputation for innovation and quality.
  • Regulatory Impact: The case sets a precedent for future lawsuits against tech companies over false advertising of advanced features.
  • Consumer Behavior: This may lead to more skepticism among consumers when evaluating new products and their claimed features.

Key Metrics and Figures

  • Launch Timing: Apple Intelligence features were heavily marketed in the Summer of 2024.
  • Ad Pull Date: The personalized Siri ad was removed from YouTube after the delay.
  • Court Filing: Lawsuit filed on Wednesday in San Jose District Court.

Strategic Considerations

  • Brand Image: Apple’s premium brand image could be tarnished if consumers feel misled.
  • Competitor Advantage: This lawsuit may provide an opportunity for competitors to highlight their own AI capabilities as more reliable.
  • Legal Precedent: The outcome could set a legal precedent for defining truthful AI advertising standards.

Conclusion

The lawsuit underscores the risks of aggressive marketing in the AI-driven hardware space. While Apple’s delay of Apple Intelligence features may have been unforeseen, the allegations suggest a broader issue of misrepresentation that could have long-term consequences for the company and the industry.