Apple settles eavesdropping class action for $153 million

Apple has agreed to pay $US95 million ($153 million) to settle a lawsuit that accused the company of turning virtual assistant Siri into a snoop that eavesdropped on users of iPhones and other devices.

The proposed settlement filed in a US federal court this week still needs to be approved by a judge, but here are a few things to know about the case and the privacy issues it raised.

An Apple conference about Siri in California in 2018. Credit: nna\mikala.theocharous

What was the lawsuit about?

The Wood Law Firm, which specialises in class-action lawsuits, filed the complaint against Apple in August 2019, shortly after The Guardian published an article alleging that Siri’s microphone had been surreptitiously turned on to record conversations occurring without users’ knowledge.

Apple issued a September 2014 software update that was supposed to activate the virtual assistant only with the triggering words “Hey, Siri”, but The Guardian story alleged Siri was listening and recording conversations at other times to help improve the company’s technology.

The story led to the lawsuit, which raised allegations that Apple shared some of the conversations that Siri secretly recorded with advertisers looking to connect with consumers who were more likely to buy their products and services.

How many people are covered by the settlement?

Tens of millions of US consumers who owned or purchased iPhones and other devices equipped with Siri from September 17, 2014, through to the end of last year will be eligible to file claims.

It’s far too early to tell for certain, but the settlement envisions paying out up to $US20 per Siri-enabled device, with each consumer limited to a maximum payout. The final amount could be affected by two factors: the number of claims and how much of the settlement fund is reduced to cover legal fees and costs.

A claims administrator estimates only 3 per cent to 5 per cent of eligible consumers will file claims. The lawyers in the case are seeking nearly $US30 million ($48 million) in fees and expenses, but that figure could still be lowered by US District Judge Jeffrey White, who is overseeing the case. A proposed February 14 court hearing has been proposed to review the settlement terms.

Did Apple break any laws?

If the allegations were true, Apple may have violated federal wiretapping laws and other statutes designed to protect people’s privacy.

Apple adamantly denied wrongdoing and maintained that it would have been cleared of any misconduct had the case gone to trial. Lawyers representing the consumers asserted that Apple’s misbehaviour was so egregious that the company could have been liable for $US1.5 billion ($2.4 billion) in damages if it lost the case.

Although Apple hasn’t explained the reasons for making the settlement, major companies often decide it makes more sense to resolve class-action cases rather than to continue to run up legal costs and risk the chance of potentially bad publicity. The lawsuit also targeted one of Apple’s core values framing privacy as a “fundamental human right”.

Although $US95 million sounds like a lot of money, it’s a pittance for Apple. Since September 2014, the company’s total profits have exceeded $US700 billion ($1.13 billion) – a streak of prosperity that has helped propel the company’s market value to about $US3.7 trillion ($6 trillion).

Do I need to be worried, and how do I disable Siri?

Perhaps. A case similar to the one filed against Siri is still active in a California court against Google and the virtual assistant in its Android software, which has been widely used in smartphones for years.

You can turn Apple’s virtual assistant off by following these simple steps:

1. Navigate to settings Siri & Search.
2. Toggle off listen for “Hey Siri” and press the side button for Siri.
3. Tap “turn off Siri” when a pop-up window appears.

You can also disable individual apps’ access to your iPhone’s mic by navigating to settings (select the app) then toggle off microphone.

AP

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