Apple is facing a class-action lawsuit over allegations of false advertising related to the rollout of its Apple Intelligence features. The lawsuit, filed in the U.S. District Court in San Jose, claims that Apple misled consumers by heavily marketing its AI-powered tools despite knowing that many of them would not be available at launch. Consumers who purchased iPhones and other Apple devices expecting immediate access to these features are now seeking financial damages.
Apple AI Controversy: Allegations of Misleading Advertising
The lawsuit asserts that Apple’s marketing campaigns created the expectation that Apple Intelligence would be available from day one. Features such as AI-powered Siri upgrades, Image Playground, and Genmoji were prominently advertised as key selling points, persuading customers to upgrade to the latest iPhone models. However, Apple later confirmed delays in rolling out these features, leaving users without the promised functionalities.
According to the complaint, Apple knowingly continued to promote these AI features despite being aware of internal delays. The lawsuit states
Apple’s advertisements cultivated a clear and reasonable consumer expectation that these transformative features would be available upon the iPhone’s release. Apple misrepresented the actual capabilities of its devices by marketing a significantly limited or entirely absent version of Apple Intelligence.
Internal Challenges and Leadership Concerns
Apple Intelligence was first introduced at WWDC 2024, aiming to bring a suite of AI-powered tools to iPhone, iPad, and Mac users. However, reports suggest that Apple has struggled to meet its own deadlines for integrating these features. Internal sources indicate that Apple CEO Tim Cook has grown frustrated with the repeated delays, particularly questioning the effectiveness of AI chief John Giannandrea. Apple has since restructured its leadership and reassigned key AI projects to Mike Rockwell, the executive responsible for the development of Apple Vision Pro.
The lawsuit highlights consumer dissatisfaction, arguing that Apple’s AI delays caused financial harm to customers who upgraded their devices based on misleading claims. A notable example mentioned in the legal complaint is a September 2024 advertisement featuring actor Bella Ramsey demonstrating Siri’s AI-powered enhancements. While the ad was widely circulated on television and online, Apple quietly removed it from YouTube after confirming the AI delays.
Despite this, plaintiffs claim that Apple has failed to issue a public correction or retraction for other advertisements making similar promises. The lawsuit further alleges that Apple’s marketing strategy was aimed at positioning itself ahead of competitors in the AI space. The legal complaint states that Apple’s promotion of Apple Intelligence was designed to generate “unprecedented excitement in the market,” encouraging customers to upgrade at a premium price while misleading them about the actual functionality of their devices.
As the case unfolds, Apple faces growing scrutiny over its AI strategy and marketing practices. The lawsuit raises significant questions about corporate transparency and consumer protection in an era where AI-powered features are a key selling point for modern devices.