Attorney General Doug Peterson, along with a coalition of 33 additional attorneys general, on Wednesday announced a $113 million settlement with Apple, Inc. (Apple) regarding Apple’s 2016 decision to throttle consumers’ iPhone speeds in order to address unexpected shutdowns in some iPhones.
The attorneys general allege that Apple discovered that battery issues were leading to unexpected shutdowns in iPhones. Rather than disclosing these issues or replacing batteries, however, Apple concealed the issues from consumers. Apple’s concealment ultimately led to a software update in December 2016 that reduced iPhone performance in an effort to keep the phones from unexpectedly shutting down.
The attorneys general allege that Apple’s concealment of the battery issues and decision to throttle the performance of consumers’ iPhones violated state consumer protection laws. Under the settlement, Apple must provide truthful information to consumers about iPhone battery health, performance, and power management. Apple must provide this information in various forms on its website, in update installation notes, and in the iPhone user interface itself.
“Consumers place significant trust in the manufacturers of their smartphones and other connected devices,” General Peterson said. “I appreciate Apple acknowledging, with today’s settlement, the importance of retaining that trust when it comes to helping consumers manage these same devices.”
Under Wednesday’s settlement, Apple will pay Nebraska $1,339,427.
Apple recently entered into a proposed settlement of class action litigation related to the same conduct, and under that proposed settlement Apple will pay out up to $500 million in consumer restitution. Consumers can find additional information here: https://www.smartphoneperformancesettlement.com/.
Joining Attorney General Peterson in this settlement are the attorneys general of Alaska, Arizona, Arkansas, California, Connecticut, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Missouri, Montana, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Wisconsin, and the District of Columbia.