Apple has recently settled a class-action lawsuit, agreeing to pay $25 million concerning its Family Sharing feature. This functionality enables users to share access to purchased apps, music, movies, TV shows, and books with up to five family members. The lawsuit, initiated in 2019, alleges that Apple misrepresented the capabilities of Family Sharing, particularly in sharing subscriptions to apps.
Apple settles its protracted class-action lawsuit
Despite settling, Apple maintains its stance of denying any wrongdoing. The company characterizes the settlement as a pragmatic resolution, stating that the continued defense of the lawsuit would be both burdensome and expensive. It is important to note that Apple does not admit fault, liability, or any form of wrongdoing in this settlement agreement. The crux of the lawsuit revolves around the claim that Apple advertised Family Sharing as an option for apps that did not support this feature.
According to court documents, a significant portion of subscription-based apps, a growing segment within the Apple ecosystem, did not support sharing with designated family members. Despite this limitation, these apps were presented on their landing pages as supporting Family Sharing until January 30, 2019. The lawsuit contends that Apple was aware of this incongruity but continued to advertise Family Sharing on these apps.
As a result, millions of consumers purportedly downloaded subscription-based apps under the impression that they were available for Family Sharing, only to discover after making payments that this feature was not supported. The court document alleges that this discrepancy led to misleading advertising, creating a situation where users paid for subscriptions based on inaccurate information. To be eligible for compensation, individuals must meet specific criteria.
Compensation framework and the effect of the lawsuit
U.S. residents who were part of a Family Sharing group with at least one other person between June 21, 2015, and January 30, 2019, and purchased a subscription to an app from the App Store during that period may qualify for compensation. Eligible individuals will receive an email notification this week regarding the settlement. Each class member can claim $30 as part of the settlement. However, the final amount may vary based on the number of claims filed. Importantly, no individual payment will exceed $50.
A notable aspect of the settlement is the allocation of $10 million for attorney fees, highlighting the legal costs associated with such cases. The deadline for eligible class members to file a claim is March 1, 2024. A final approval hearing for the settlement is scheduled for April 2, 2024. This settlement aims to address the allegations surrounding the misrepresentation of Family Sharing capabilities, providing affected users with a financial remedy for the perceived discrepancies in Apple’s advertising practices.
Apple’s $25 million settlement signifies the resolution of a class-action lawsuit related to its Family Sharing feature. While the company denies wrongdoing, it acknowledges the practicality of settling to avoid the burdensome costs of continued legal defense. The lawsuit alleged that Apple misrepresented Family Sharing capabilities for subscription-based apps, leading to misleading advertising and subsequent dissatisfaction among users who expected shared access to such content.
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