Apple Inc. is confronting a federal lawsuit alleging false advertising and unfair competition concerning the promotion of its iPhone 16’s AI capabilities, branded as “Apple Intelligence.” The lawsuit, filed on March 19, 2025, in the U.S. District Court in San Jose, seeks class-action status and unspecified financial damages for consumers who purchased devices expecting these advanced features.
Allegations of Misleading Advertising
The plaintiff, represented by Clarkson Law Firm, asserts that Apple launched an extensive marketing campaign highlighting Apple Intelligence as a pivotal feature of the iPhone 16 series. Advertisements showcased enhancements such as a more personalized Siri, capable of drawing on a user’s personal context to answer questions and performing numerous new actions across various apps. One prominent ad featured actress Bella Ramsey demonstrating these advanced Siri functionalities.
However, these AI features have been delayed significantly, with potential rollout not expected until 2026. The lawsuit contends that Apple knowingly advertised capabilities that were not available at the time of the iPhone 16’s release, misleading consumers about the device’s actual functionalities.
Legal Grounds and Consumer Impact
The lawsuit alleges violations of California’s Unfair Competition Law, False Advertising Law, and Consumers Legal Remedies Act. It also includes claims of fraud, negligent misrepresentation, breach of contract, breach of implied warranty, and unjust enrichment. The plaintiff argues that consumers were enticed to purchase the iPhone 16 at a premium price, expecting innovative AI features that were not delivered as advertised.
Apple’s Response and Internal Challenges
Apple has acknowledged the delay in rolling out the Apple Intelligence features but has not provided specific reasons for the postponement. Spokeswoman Jacqueline Roy stated, “It’s going to take us longer than we thought to deliver on these features, and we anticipate rolling them out in the coming year,” indicating a possible release in spring 2026 with iOS 19.4.
Internally, the delays have reportedly caused concern among Apple’s executives. Siri chief Robby Walker described the setbacks as “ugly and embarrassing,” while other leaders, including Craig Federighi, expressed that the features “didn’t work properly—or as advertised—in their personal testing.” In response, Apple has reassigned Mike Rockwell from the Vision Products Group to lead the revival of Siri, signaling a focused effort to address these challenges.
Competitive Landscape and Consumer Trust
The lawsuit also highlights the competitive pressures Apple faces in the AI domain, noting that rivals like Samsung and Google are advancing their AI platforms. The plaintiff asserts that Apple’s alleged misrepresentations have harmed consumers by leading them to purchase devices based on features that were either misrepresented or nonexistent, thereby prioritizing profits over transparency.
Conclusion
This legal action underscores the critical importance of accurate advertising and the potential repercussions tech companies face when product capabilities do not align with promotional claims. As the lawsuit progresses, it will serve as a significant case study on corporate accountability and consumer rights in the rapidly evolving field of artificial intelligence.
