Apple Agrees to $113 Million Multistate Settlement over Slower Phone Speeds

  • A bipartisan group of 34 AGs, led by Arizona AG Mark Brnovich, Arkansas AG Leslie Rutledge, and Indiana AG Curtis Hill, reached a settlement with Apple Inc. to resolve allegations that Apple throttled iPhone speeds to mask battery issues, thereby prompting users to purchase new devices in violation of state consumer protection laws.
  • The state complaints alleged that Apple discovered that aging batteries on certain iPhone models sent spikes to the phone’s processor that caused unexpected shutdowns of the device, and that instead of informing consumers about this flaw, Apple installed software on these iPhone models to reduce chip speed to reduce phone performance and made it difficult for consumers to replace the batteries.
  • Under the terms of the settlement, Apple will pay $113 million to the states; must provide truthful information to consumers about iPhone power management and battery health on its website, iPhone user interface, and update notes; and must educate staff on this information.