Apple has settled a class-action lawsuit that alleged the company misled users by storing iCloud data on third-party servers, allocating a maximum of $14.8 million for subscribers. For years, dating back to the late Steve Jobs' reign as CEO, Apple has viewed privacy as a human right. Its policy has been to ask users what data they wish to share with the company and others, and moreover, to keep asking continually as users provide data. Recently, there have been a few slip-ups that have compromised user privacy. Earlier this year it was revealed that a software update discretely changed a setting that would send audio recordings from Siri and dictation to Apple without the users' knowledge. The bug was fixed, but it was a reminder that even Apple can make errors that endanger user privacy.
iCloud is a service that has been an integral part of the Apple ecosystem for more than a decade in various shapes and forms. It facilitates the interconnectedness of the company's services, through features like iMessage, file sharing, and media storage. A subscription option was first introduced for iCloud to provide more cloud storage for users who required more than the five gigabytes that Apple provides free of charge. In 2021, Apple expanded its cloud service with the introduction of iCloud+, a subscription that added additional features to the standard additional storage space. Alongside up to two terabytes of storage, users could use the VPN-like iCloud Private Relay and Hide My Email services.
The class-action suit brought against Apple began as far-reaching allegations that cited violations of numerous consumer protection laws in California, where the company is headquartered. Court proceedings narrowed down the allegations over time, allowing only the 'inductive relief' claim to move forward in the hearings. This means that the primary function of the lawsuit was to stop Apple from storing iCloud data on third-party servers, and if the court sided with the plaintiff, Apple could have been forced to stop this practice outright. However, the company decided to settle the class-action, allocating a maximum of $14.8 million for iCloud subscribers between September 16, 2015 and January 31, 2016.
Unlike many class-action lawsuits, there isn't a clear-cut way to check online if a user has been included as a class member in this settlement. That's because each iCloud account has an email address associated with it, and the terms of the agreement state that emails would be directly sent to affected users. If an iCloud subscriber believes they were affected, they should check the email address connected to the iCloud account. Only iCloud subscribers with a billing address in the United States on file with Apple can claim refunds under the terms of the settlement. Additionally, included users will receive prorated payments less than or equal to the total amount they paid in subscription payments during that period.
Although Apple did settle the lawsuit, it has denied all of the allegations that claim it misled users in the storage of iCloud data. "Apple denies that it has breached any contractual provision in the iCloud Terms and Conditions or made any misrepresentations with respect to the storage of iCloud user data," the filing states. The company says that the lawsuit simply would have exhausted too many resources if it continued to be argued in court. The move benefits Apple, as the terms of the agreement declare that the company will not be required to pay out in excess of $14.8 million. For a company with a multi-trillion dollar valuation, there's little damage done to Apple by settling the claims made in this lawsuit.
