On Wednesday, the American multinational technology company Apple Inc. sets to pay a settlement of $113 million to its misled customers. According to official reports, Apple finalized the agreement’s lease to compensate for its manufactured iPhones’ battery issues, inconveniencing iPhone users with unexpected power shutdowns as a result. The company allegedly hid the battery problem by issuing a series of unprecedented software updates on purchasers’ phone units. A part of the overall settlement would go to several California business services affected by the incident, including the Los Angeles City District Attorney’s Office.
From the total agreement, California anticipates receiving approximately $24.6 million. The paid amount includes transparent disclosures on Apple’s and iPhone’s websites informing customers of the real happenings behind the battery problems. According to the settlement’s prescriptive terms, Apple has to reveal to its consumers when software updates impact their phones’ processing performance. Additionally, the previously mentioned condition includes the business organizations’ plans regarding their resolutions on fixing their battery performance issues. As of late, the court has yet to pass its approval on the agreement.
Moreover, the settlement would contact at least multiple California states to reimburse them for the disruptions that Apple has caused them. Alongside 33 other regions, District Attorney’s Offices of Santa Clara, Santa Cruz, Los Angeles, Alameda, and San Diego helped spread the resolution news. Official reports also noted that the California Attorney General Office aided in the extension of the reimbursement announcement.
According to the lawsuit filed against Apple, the iPhone 6 and 7 generation mobile units contain batteries vulnerable to sudden power shutdowns. Additionally, the said batteries would cause random shut-offs once they fail to supply enough voltage to support the processing performance of the previously mentioned iPhones. Afterward, Apple reportedly misled its patrons that the software updates aim to enhance power management and improve performance. However, the company failed to disclose performance reductions as a consequence of using the software overhauls.
Los Angeles County District Attorney Jackie Lacy expressed satisfaction with the settlement news. According to her, the corporation agreed its compliance with the state consumer laws and that Apple vowed to provide transparent information regarding details about lithium-ion batteries, performance control, and sudden power-offs to millions of its customers. Moreover, Lacey declared that it is her and fellow prosecutors’ duty to protect clients and secure that all companies must be subject to give clear updates and details on buyers’ paid products regardless of size.
According to Summer Stephan, San Diego County District Attorney, Apple’s $113 million settlement considers as one of California’s largest consumer protection judgments in the state’s entire customer safeguarding history. Stephan noted that on behalf of iPhone users affected by the occurrence, the reimbursement seeks to give the impacted clients justice. Additionally, she stated that any company that uses unfair business operations, such as in Apple’s case of slowing or tampering with iPhone performance, should face accountability for its actions.
Along with the $113 million settlement, Apple Inc. would also pay at least $500 million to iPhone owners affected by throttling problems and work out private class-action lawsuits.
The case came to light when the slowdown performance issues of certain iPhone brands emerged between 2014 and 2016. Due to the previously mentioned problem, affected iPhone users posted their experiences online via technology and Reddit blogs.
During that period, Apple clarified that the issue only exists on a “handful of iPhone units.” According to state examiners, however, the company masked the public’s problem by creating software updates meant to “boost phone performance.” As part of the settlement, Apple did not admit to any allegations of committing additional breaches or violating law orders.
An Apple spokeswoman refused to comment anything regarding the terms of the settlement.