$113 Million Settlement with Apple Over iPhone Throttling
AUSTIN – Attorney General Ken Paxton joined a coalition of over 30 other attorneys general in a $113 million settlement with Apple, Inc. regarding Apple’s 2016 decision to throttle customers’ iPhone speeds in order to address unexpected shutdowns in some iPhones. After a multistate investigation, during which Texas served on an executive committee with Arizona, Arkansas, Indiana, Missouri, Louisiana, Ohio, Wisconsin and the District of Columbia, the attorneys general allege that Apple discovered battery issues led to unexpected shutdowns in iPhones. Rather than disclosing these issues or replacing batteries, Apple concealed the issues and reduced iPhone performance. Apple’s concealment of the battery issues and decision to throttle caused Apple to profit from selling additional phones to customers whose phone performance had decreased.
“I am pleased to announce that Apple is being held accountable for their deceitfulness with consumers and secretive decision not to inform consumers of known issues,” said Attorney General Paxton. “This settlement is a victory for honest business and customers and a stern warning to any companies who attempt to cover their mistakes at the expense of consumer choice.”
Texas will receive just over $7.5 million in monetary payment. In addition to the monetary payment, Apple must also provide truthful information to consumers about iPhone battery health, performance and power management on their website, update installation notes, and in the iPhone user interface itself. Assistant Attorneys General Beth Chun, Paul Singer, and Rick Berlin represented the State of Texas. Apple also recently entered into a proposed settlement of class action litigation regarding the same conduct and upon finalization will pay out up to $500 million in consumer restitution.
Read a copy of the settlement here.