Apple hit with a second lawsuit for false advertising about Apple Intelligence features

Another day, another lawsuit. A Canada-wide class-action lawsuit has been launched in B.C. alleging Apple Canada engaged in misleading advertising when it marketed the iPhone 16, by promising it would include innovative artificial intelligence features that it did not have, reports The Vancouver Sun.

The “pervasive” marketing campaign included “misrepresentations and/or misleading statements” that the iPhone 16 would be equipped with its new Apple Intelligence, to induce consumers into buying, according to the notice filed in B.C. Supreme Court. 

“As such, consumers paid an unlawful price premium for the … iPhone 16 model smartphone that they did not need, based on artificial intelligence features that did not exist,” it alleged.

The suit names Apple Inc. and Apple Canada as defendants. The Vancouver Sun says the proposed lawsuit alleges breach of contract, fraud, deceit, and unjust enrichment under provincial consumer protection laws and the federal Competition Act.

The Canadian lawsuit mirrors one filed in the U.S. on March 21. According to Axios, here’s what the lawsuit alleges: Apple’s advertisements saturated the internet, television, and other airwaves to cultivate a clear and reasonable consumer expectation that these transformative features would be available upon the iPhone’s release,” the suit reads.

This drove unprecedented excitement in the market, even for Apple, as the company knew it would, and as part of Apple’s ongoing effort to convince consumers to upgrade at a premium price and to distinguish itself from competitors deemed to be winning the AI-arms race.

Contrary to Defendant’s claims of advanced AI capabilities, the Products offered a significantly limited or entirely absent version of Apple Intelligence, misleading consumers about its actual utility and performance. Worse yet, Defendant promoted its Products based on these overstated AI capabilities, leading consumers to believe they were purchasing a device with features that did not exist or were materially misrepresented.

The Canadian lawsuit is the latest fallout from Apple’s acknowledgment that key features, including an enhanced Siri, won’t ship until far later than originally planned. It specifically highlights a September 2024 ad featuring actor Bella Ramsey touting Siri capabilities that are now delayed.

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