Apple agreed to settle a five-year lawsuit against them, offering to pay a $95 million settlement. The lawsuit, Lopez vs. Apple, first filed back in 2019, alleged Apple used its digital assistant Siri, to listen in on Apple users, per NPR.
The proposed settlement was filed in court on Tuesday in Oakland, California. However, U.S. District Judge Jeffrey White must approve the proposed settlement. Attorneys on both sides will review the terms in a proposed hearing on February 14 in Oakland.
Allegations claim Siri recorded private conversations
According to the lawsuit, Apple activated Siri to record people’s conversations. These recordings allegedly happened without anyone saying, “Hey, Siri” which is how you activate the digital assistant.
Subscribe to Kiplinger’s Personal Finance
Be a smarter, better informed investor.
Save up to 74%
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
Once recorded, some of those conversations would end up in the hands of advertisers, who could use the data to create detailed profiles and more targeted ads, based on the user’s interests, location and buying habits, the lawsuit claimed.
Two plaintiffs involved in the case stated they received targeted ads for Olive Garden and Air Jordan shoes after discussing them with friends. Another plaintiff said he received ads for medical treatment after speaking with his doctor.
These allegations run counter to Apple’s stance on personal security. CEO Tim Cook stated at the 2022 IAPP Global Privacy Settlement, “Protecting privacy is one of the most essential battles of our time.”
Apple denies any wrongdoing regarding the lawsuit’s allegations. The company currently has a market cap of $3.67 billion, thanks in part to the huge success and sales of the iPhone 16. To put the settlement into context, it would be akin to nine hours of profit for Apple, according to Reuters.
How would the settlement work?
Lawyers on both sides need to review and discuss terms of the settlement. Even then, the judge must approve them. If a settlement happens, it could potentially impact millions of Apple device users dating from September 17, 2014 to December 31, 2024.
NPR estimates Apple users could receive a settlement of $20 per Siri device used during this timeframe, with a max benefit cap of five devices per user. However, that payout could fluctuate depending on the volume of claimed payments. In a court document, they estimate only 3% to 5% of customers affected will take advantage of the settlement.
Related content
