Apple is under fire for misleading claims about the availability of some Apple Intelligence capabilities.
After an inquiry, BBB National Programs’ National Advertising Division (NAD) recommended that Apple modify or discontinue advertising claims related to the availability of certain Apple Intelligence features.
NAD’s inquiry examined how expressed and implied claims about Apple Intelligence, Apple’s AI suite, on the Apple Intelligence website and in promotional materials for the iPhone 16 and iPhone 16 Pro indicated that certain AI features were available at the launch of the new iPhones in September 2024, which was prior to their actual release. Specifically, the inquiry looked into claims about the availability of AI features including Priority Notifications, Image Generation tools (Image Playground, Genmoji, and Image Wand), ChatGPT integration into Siri and Writing Tools, and new Siri capabilities.
While the new iPhone was available in September 2024, Apple Intelligence was in the beta phase then and didn’t launch commercially until the end of October. However, NAD said Apple included the phrase “Available Now” on the Apple Intelligence website and above feature descriptions at the time of the iPhone 16 launch, but before those AI features were actually available to consumers.
NAD explained that while Apple had staggered the release of Apple Intelligence updates between October 2024 and March 2025, Apple’s claims about the availability of AI features at the time of the iPhone launch were unsupported. In addition, NAD said Apple’s disclosures about Apple Intelligence, including footnotes and small-print disclosures, weren’t clear or conspicuous enough.
NAD also investigated claims that AI updates to Siri were prematurely listed under the “Available Now” heading. Apple responded that those updates to Siri wouldn’t be available according to the original timeline and that it had updated promotional materials, claims and disclosures to reflect the change. Apple also discontinued its “More Personal Siri” promotional video, which featured actress Bella Ramsey.
In response to NAD, Apple stated: “While we disagree with the NAD’s findings related to features that are available to users now, we appreciate the opportunity to work with them and will follow their recommendations.”
An archived webpage shows that Apple appears to have removed the “Available Now” claim from its Apple Intelligence site in late March, according to The Verge.
In March, the US District Court in San Jose filed a federal lawsuit claiming that Apple’s preemptive promotion of Apple Intelligence was a case of false advertising and unfair competition, according to Axios. The suit argued that Apple misled consumers about Apple Intelligence’s “actual utility and performance,” overstated the device’s AI capabilities and led consumers to believe they were purchasing a smartphone with features that didn’t exist or were misrepresented.
The Clarkson Law Firm filed the suit – this is the same firm that sued Google and Open AI over their AI practices, reported Axios.
Accessing Apple Intelligence requires an upgrade to the new iPhone 16. While smartphone makers are banking on AI as a device differentiator, many consumers in the US aren’t convinced. About 25% of smartphone owners don’t find AI features helpful, according to a recent survey by CNET, and just 18% of respondents said AI integrations are their primary motivator for upgrading their device.
Other features like longer battery life (61%), more storage (46%) and improved camera features (38%) are bigger drivers for upgrading a device, said CNET.
In addition, 34% of respondents surveyed said they have privacy concerns regarding AI on smartphones.
If AI features take off, however, they could represent new business and revenue opportunities for service providers, which are a large channel for selling smartphones to end users in the US.
More broadly, service providers have an opportunity to resell, co-sell and upsell AI products to customers, including building managed services around AI, explained research firm Canalys, a sister company to Light Reading, in a recent report.
According to CNET, Apple Intelligence features can use up to 7GB of the iPhone’s internal storage, which might be unappealing to some. For users concerned with storage-hungry AI features or simply uninterested in using Apple Intelligence, CNET explains how to turn off the AI functionality.
In 2024, Apple experienced a 3% year-over-year decline in iPhone shipments. However, Apple led the market in global smartphone sales for Q1 2025 with 19% of market share, followed by Samsung with 18%, according to Reuters. Apple recently brought over 600 tons of iPhones, about 1.5 million devices, from India to the US to avoid the Trump Tax, aka US tariffs.
Source: Apple dinged for jumping the gun on Apple Intelligence promotions
