Apple Will Pay Hawaii More Than $1.3 Million

The Hawaii Department of Commerce and Consumer Affairs Office of Consumer Protection (OCP) joined a coalition of over 30 other state attorneys general in announcing 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.

Apple will pay Hawaii more than $1.3 million. In addition to the monetary payment, Apple also must provide truthful information to consumers about iPhone battery health, performance, and power management.

Based on the multistate investigation, the states 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.

“This settlement holds Apple accountable for concealing its efforts to deliberately slow down iPhones. Its lack of transparency led people to mistakenly believe that there were problems with their phones that didn’t exist,” said OCP Executive Director Stephen Levins. “Apple’s conduct prevented people from opting for an easy fix, replacing the battery. Instead, Apple was able to profit from its conduct by causing users to purchase new phones even though their existing phones were working fine.”