AG Fox Announces Multistate Settlement with Apple Over iPhone Throttling

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AG Fox Announces Multistate Settlement with Apple Over iPhone Throttling

HELENA – Attorney General Tim Fox, along with a coalition of over 30 other attorneys general, announced a $113 million settlement with Apple, Inc. today regarding Apple’s 2016 decision to throttle consumers’ iPhone speeds in order to address unexpected shutdowns in some iPhones.

Based on the multistate investigation, the attorneys general allege that Apple discovered that battery issues were leading to unexpected shutdowns in iPhones. However, rather than disclosing these issues or replacing batteries, 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 led to Apple profiting from selling additional iPhones to consumers whose phone performance Apple had slowed.

“Mobile phones have become a necessary part of life for the majority of Montanans,” Attorney General Tim Fox said. “Consumers depend on the companies that build mobile phones to provide reliable devices. Apple concealed issues in their iPhones to make a profit off consumers, and that’s not the kind of business practice we want to see here in Montana. This settlement is a big step forward in making things right for consumers and ensuring iPhones function in a manner that purchasers expect,” Fox added.

Under the settlement, Apple will pay Montana approximately $1,160,896. In addition to the monetary payment, Apple also must provide truthful information to consumers about iPhone battery health, performance, and power management. Apple must provide this important information in various forms on its website, in update installation notes, and in the iPhone user interface itself. Apple recently also 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.

For more information about iPhone battery replacements, visit Apple support.

Copy of the Complaint.
Copy of the Consent Judgment.

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