Apple Has Agreed To Pay $113 Million To Settle Customer Fraud Lawsuits Over Allegations That The Company Secretly Slowed Down Old iPhones

On Wednesday, Apple agreed to pay $113 million to settle fraud lawsuits brought by 33 states over allegations that the tech giant intentionally slowed down old smartphone models. These 33 US states claimed that the company had done this to drive consumers into purchasing new iPhones. Back in 2016, millions of consumers were affected when iPhone 6, iPhone 7, and iPhone SE were slowed down. This scandal was later dubbed batterygate.

Previously, the company denied that it purposely slowed iPhone batteries. Apple has said that it did so to preserve ageing battery life amid widespread reports of iPhones unexpectedly turning off. Although Apple maintained that users didn't need to replace their sluggish iPhones, state attorneys general led by Arizona discovered that consumers had no other choice. Apple is the most valuable company on this planet, and it acted deceptively by hiding the shutdown and slowdown problems. Arizona Attorney General Mark Brnovich stated in a complaint that several users decided that the only way to get enhanced performance was to buy a newer-model iPhone from the company. This report was made public on Wednesday, and Mark added that Apple completely understood such effects on sales.

State investigators claim that this move boosted iPhone sales potentially ‘by millions of smartphones each year.’ According to reports, the slowdown impacted iPhones that were released between the years 2014 and 2016. And the issue first came to light when Apple users complained about it on Reddit and tech blogs.

At that time, the company claimed that these unexpected iPhone shutdowns impacted a ‘minimal number’ of smartphones. However, state investigators say that the tech giant worked to conceal the problem from the public. A company’s spokesperson declined to comment on the settlement. And in December 2017, the company eventually admitted that it slowed down batteries to address the device shutdown problem.

However, legal challenges continued. Back in March of this year, the company agreed to pay up to $500 million to settle claims of intentionally slowing down older iPhones. This settlement called for the company to pay users at least $25 per iPhone. And as part of Wednesday’s settlement, the company will distribute $113 million among states including Pennsylvania, Tennessee, and California.

Apple has also agreed for the upcoming 3 years to provide ‘true information’ about the power management of iPhone across iPhone settings, software update notes, and Apple’s website.



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