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. Read More
Proposed lawsuit alleges tech company made ‘misleading’ statements for new phone last fall about AI enhancements that it now says are in development, according to lawsuit filed in B.C. for buyers across Canada.
Proposed lawsuit alleges tech company made ‘misleading’ statements for new phone last fall about AI enhancements that it now says are in development, according to lawsuit filed in B.C. for buyers across Canada.
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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.
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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.
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“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.
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The suit names Apple Inc. and Apple Canada as defendants.
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The proposed lawsuit alleges breach of contract, fraud, deceit, and unjust enrichment under provincial consumer protection laws and the federal Competition Act.
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Apple, based in California, is “intimately familiar” with its consumer protection laws that “prohibit false advertising regarding the capabilities, availability and utility of AI products” there and elsewhere, the lawsuit said.
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“In the race for AI market share, it decided to violate them anyway, misleading consumers into believing that the products possessed AI features, functions and benefits the products simply do not have and, according to company and industry insiders, may never have,” it says.
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It also argued that if the AI features are added later, they will likely then be available everywhere and wouldn’t be unique or innovative. Also, as Apple releases new iPhone models, it would leave “consumers who bought into Apple’s false promises for the iPhone Model 16 series stuck with outdated technology for which they also overpaid.”
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Travis Paivarinta, the representative plaintiff, bought an iPhone 16 Pro Max on March 5 from an Abbotsford Best Buy for $1,799, “believing that his new iPhone would contain the increased and enhanced AI capabilities that Apple repeatedly touted,” it said.
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The lawsuit alleges that Apple’s website said the iPhone 16 offers “a new era for Siri” by having an “awareness of your personal context” to help you in ways that are unique to you, it said.
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In much smaller fine print under that, its says: “Siri’s personal context understanding, onscreen awareness and in-app actions are in development and will be available with a future software update.”