Apple’s iPhone 16 launch was marred by controversy when the company advertised “Apple Intelligence” as available on its website, despite some features being missing at the time of release. The National Advertising Division (NAD) has ruled that consumers would have believed all features were available, not just those released in software updates later.
The NAD decision highlights a key point: when an advertised service is “less available than available,” it must be part of the main claim itself, rather than being disclosed in fine print. This means companies must clearly distinguish between what’s available now and what may come later, as the courts will scrutinize ads to ensure accuracy.
As Apple faces multiple lawsuits over its AI claims, the NAD decision serves as a warning to other companies: be clear about which features are available at launch and when upgrades will follow. The consequences of false advertising can be severe, so it’s essential for businesses to carefully consider their marketing strategies and adhere to consumer protection regulations.
Source: https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/multiple-bites-at-the-apple-over-ai-claims