Apple faces legal action for using "false" Apple Intelligence ads to drive iPhone 16 sales

Apple Intelligence is arguably Apple's most anticipated feature drop. However, the tech giant recently delayed the launch of its AI strategy again, which has seemingly raised eyebrows among interested parties, including investors and consumers.

While Apple's AI strategy shows great promise, at least on paper, insiders within the company expressed concerns, indicating Apple Intelligence might be 2 years behind OpenAI's ChatGPT.

The iPhone maker officially announced Apple Intelligence's delayed launch but didn't throw a bone highlighting the reason behind this decision. And it now seems the company may be trapped between a rock and a hard place after reportedly being slapped with a lawsuit for falsely advertising its AI strategy (via Axios).

The class-action lawsuit was filed in the US District Court in San Jose on Wednesday earlier this week. It accuses Apple of falsely advertising Apple Intelligence features for its iPhone 16 lineup.

The lawsuit further claims that the company was aware that it couldn't deliver the AI capabilities it advertised, driving "unprecedented excitement" among consumers. Interestingly, Apple advertised its AI features, suggesting they'd ship during the same timeframe as the iPhone 16 lineup release.

Related: Veteran Apple commenter John Gruber says Apple Intelligence is "vaporware"

The plaintiffs indicate that Apple used its aggressive marketing strategy, packed with yet-to-ship AI features, to deceive millions into purchasing its new iPhone lineup, violating multiple false advertising and consumer protection laws.

To that end, users ended up buying new devices for features that Apple hasn't delivered as promised. Reports suggest that the AI-powered features may not ship until 2026 or 2027, though Apple recently appointed Vision Pro creator Mike Rockwell to steer its Siri efforts.

The lawsuit also claims Apple's AI strategy allowed it to gain an unfair competitive advantage over its competitors in the market "who do not tout non-existent AI features, or who actually deliver them as promised."

The plaintiff seeks compensation for consumers who purchased Apple's new iPhone lineup mainly because of the AI-powered features and the overhauled Siri assistant. The lawsuit also demands injunctive relief, which will restrict Apple from marketing its misleading features of Apple Intelligence.