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National Advertising Division Recommends Apple Discontinue or Modify Availability Claims for Certain Apple Intelligence AI Features

1. NAD urged Apple to modify misleading AI feature availability claims. 2. Claims on iPhone 16 lacked support during initial advertising. 3. Apple acknowledged needed updates to marketing materials. 4. Unqualified 'Available Now' claim misled consumers about feature readiness. 5. NAD's recommendations aim to enhance advertising truth and accuracy.

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Why Bearish?

Misleading advertising can damage consumer trust and lead to regulatory scrutiny, impacting sales. Historical parallels include past FTC actions against tech firms that hurt stock prices.

How important is it?

The article highlights regulatory challenges that could affect AAPL sales and brand perception, impacting stock performance.

Why Short Term?

Immediate customer and investor reactions may occur due to advertising practices, affecting Q2 sales. Companies like Facebook faced stock value declines after similar scrutiny.

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New York, NY, April 22, 2025 (GLOBE NEWSWIRE) -- As part of its marketplace monitoring program, BBB National Programs’ National Advertising Division recommended that Apple Inc. modify or discontinue advertising claims regarding the availability of certain features associated with the launch of its AI-powered Apple Intelligence tool in the U.S. The National Advertising Division’s (NAD) inquiry focused on express and implied claims made on the Apple Intelligence webpage and in promotional materials for the iPhone 16 and iPhone 16 Pro that conveyed the availability of certain Apple Intelligence features, including Priority Notifications, Image Generation tools (Image Playground, Genmoji, and Image Wand), ChatGPT integration into Siri and Writing Tools, and new Siri capabilities. Availability Claims NAD found that Apple’s unqualified “Available Now” claim, positioned at the top of its Apple Intelligence webpage and above detailed feature descriptions, reasonably conveyed the message that all listed features—including Priority Notifications, Image Playground, Genmoji, Image Wand, and ChatGPT integration—were available at the launch of the iPhone 16 and iPhone 16 Pro. Although Apple launched these features in staggered software updates between October 2024 and March 2025, NAD found that these claims were not properly supported at the time they were first made. NAD further found that Apple’s disclosures—such as footnotes and small-print disclosures—were neither sufficiently clear and conspicuous nor close to the triggering claims. While these features are now available, NAD recommended Apple avoid conveying the message that features are available when they are not. Siri Functionality NAD also reviewed claims that Apple Intelligence enabled new Siri functionality, including onscreen awareness, personal context, and cross-app actions. These claims also appeared under the “Available Now” heading. During the inquiry, Apple informed NAD that these Siri features would not be available on the original timeline and that it had updated its promotional materials accordingly and modified claims and disclosures to adequately communicate their status. Additionally, Apple also permanently discontinued the “More Personal Siri” video demonstration. Therefore, NAD did not review these claims and will treat them, for compliance purposes, as though NAD recommended they be discontinued. In its advertiser statement, Apple Inc. stated “While we disagree with the NAD’s findings related to features that are available to users now, we appreciate the opportunity to work with them and will follow their recommendations.” All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, National Advertising Review Board, and Children’s Advertising Review Unit decisions, subscribe to the online archive. Per NAD/NARB procedures, this release may not be used for advertising or promotional purposes. About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than a dozen globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, create a fairer playing field for businesses, and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org. About the National Advertising Division: The National Advertising Division of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. The National Advertising Division reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and promoting fair competition for business.

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