MADISON, Wis. (WFRV) – Wisconsin, along with over 30 others, have reached a $113 million agreement with Apple over the company’s 2016 decision to throttle consumers’ iPhone speeds to address unexpected shutdowns in some iPhones.
“Companies cannot deceive consumers by covering up problems with their products,” says Wisconsin Attorney General Josh Kaul. “With this agreement, Apple is being held accountable for throttling iPhone speeds to hide battery issues.”
Following a multistate investigation, over 30 attorneys general allege that Apple discovered the battery issues were leading to unexpected shutdowns in iPhones.
Rather than disclosing these issues or replacing batteries, Apple reportedly concealed the issue from consumers.
That 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 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 agreement, Apple will pay Wisconsin $3,293,355.19.
“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,” a release says.
Apple recently entered into a proposed settlement of class action litigation related to the same conduct. Under that proposed settlement, Apple will pay out up to $500 million in consumer restitution.