Nevada, other states reach $113M settlement with Apple Over iPhone throttling, Attorney General Ford says

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FILE – In this Sept. 16, 2016 file photo, a customer compares her iPhone 6, left, with an iPhone 7 at an Apple Store in Chicago. IPhone owners could get $25 from Apple after the company agreed to pay up to $500 million to settle claims over intentionally slowing down older phones to preserve older batteries. (AP Photo/Kiichiro Sato, File)

LAS VEGAS (KLAS) – Nevada Attorney General Aaron D. Ford and a coalition of over 30 attorneys general announced Wednesday a $113 million settlement with Apple, Inc. over Apple’s 2016 decision to throttle consumers’ iPhone speeds in order to address unexpected shutdowns in some iPhones.

Under the terms of the settlement, Apple will pay $1,577,469.41 to the State of Nevada. Through the multistate investigation, the attorneys general found evidence to allege that Apple discovered that battery issues were leading to unexpected shutdowns in iPhones. Rather than disclosing these issues or replacing batteries, however, Apple concealed the issues from consumers.

Apple’s concealment ultimately led to a software update in December 2016 that reduced iPhone performance in an effort to keep the phones from unexpectedly shutting down. The attorneys general allege that as a result of this concealment and subsequent decision to throttle the performance of consumers’ iPhones, Apple profited from selling additional iPhones to consumers whose phone performance Apple had slowed.

“One of my roles as attorney general is to hold businesses accountable to the highest standards for our consumers,” said AG Ford. “Through this settlement, consumers can expect more transparency from Apple, and I’m grateful to my Bureau of Consumer Protection for reaching this important agreement.”

Aaron D. Ford

In addition to the monetary payment, Apple also must provide truthful information to consumers about iPhone battery health, performance, and power management. Apple must provide this important information in various forms on its website, in update installation notes, and in the iPhone user interface itself.

Apple has also agreed to provide the option to service a consumer’s battery if it becomes significantly degraded. The Consent Judgement filed by the attorneys general is attached.

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