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Ohio part of $113 million settlement with Apple over throttled iPhone speeds

FILE - In this June 16, 2020 file photo, the sun is reflected on Apple's Fifth Avenue store in...
FILE - In this June 16, 2020 file photo, the sun is reflected on Apple's Fifth Avenue store in New York.(AP Photo/Mark Lennihan, File)
Published: Nov. 18, 2020 at 4:09 PM EST
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TOLEDO, Ohio (WTVG) - A coalition of over 30 states, including Ohio, announced a $113 million settlement with Apple, Inc. regarding Apple’s 2016 decision to throttle consumers’ iPhone speeds in order to address unexpected shutdowns in some iPhones.

Based on the multistate investigation, 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.

“Secretly manipulating our phones to increase profits wasn’t a smart idea by Apple,” Ohio AG Dave Yost said. “Apple knew what it was doing and is paying for that. It is also now being forced to take steps to not do it again.”

The attorneys general allege that Apple’s concealment of the battery issues and decision to throttle the performance of consumers’ iPhones led to Apple profiting from selling additional iPhones to consumers whose phone performance Apple had slowed.

Under the settlement, Apple will pay Ohio $4.3 million. 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 recently also entered into a proposed settlement of class action litigation related to the same conduct, and under that proposed settlement Apple will pay out up to $500 million in consumer restitution.

Consumers can find additional information here: https://www.smartphoneperformancesettlement.com/

Customers who need help with replacement services for batteries can find more info here: https://support.apple.com/iphone/repair/service/battery-power

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