Real reasons Apple is paying $95m to settle Siri privacy lawsuit

American multinational corporation and technology company, Apple, has agreed to pay $95 million to settle allegations that its Siri voice assistant violated users’ privacy by recording private conversations without their consent. 

The settlement, filed in the Oakland, California federal court on Tuesday, addresses claims that Siri’s activation through “hot words” like “Hey, Siri” led to unintentional recordings that were shared with third parties, including advertisers.

The lawsuit centres on complaints that Apple’s devices routinely captured private discussions, with some plaintiffs reporting instances where mentions of products like Air Jordan sneakers or Olive Garden restaurants resulted in targeted advertisements. 

Another plaintiff alleged receiving ads for a surgical treatment after discussing it privately with their doctor.

The proposed settlement, which requires approval from U.S. District Judge Jeffrey White, covers a class period from September 2014 to December 2024, when Siri’s “Hey, Siri” feature was introduced. 

Tens of millions of device owners could be eligible for compensation, with payments of up to $20 per Siri-enabled device, such as iPhones and Apple Watches.

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Apple has denied any wrongdoing but agreed to the settlement to resolve the case. Lawyers for the plaintiffs, who are seeking $28.5 million in legal fees and $1.1 million for expenses, also declined to comment.

A similar lawsuit against Google’s Voice Assistant, involving the same legal teams, is pending in the San Jose federal court.

The lawsuit, Lopez et al v. Apple Inc., underscores the financial scale of such settlements for a tech giant like Apple, with the $95 million payout representing less than a day’s profit for the company.