Apple Inc. has reached a tentative agreement to pay $95 million to resolve a class-action lawsuit that accused the tech giant of allowing its virtual assistant, Siri, to eavesdrop on consumers without their consent. This proposed settlement, which is pending judicial approval, was spotlighted in an article by Yahoo Finance, raising critical questions about privacy in the digital age.

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The legal battle against Apple, spearheaded by The Wood Law Firm, emerged shortly after a report by The Guardian accused Siri of recording conversations even when not prompted by the cue phrase “Hey Siri.” Allegations suggested the data collected was shared with advertisers, potentially violating federal wiretapping laws. The case affects tens of millions of U.S. consumers who have owned Siri-enabled devices since September 2014, with eligible claimants potentially receiving up to $20 per device.

Despite facing potential liabilities of $1.5 billion, Apple has denied the allegations and any legal violations. Nevertheless, the company opted for settlement, which large corporations sometimes pursue to avoid ongoing legal costs and negative publicity. While the $95 million settlement target may seem substantial, it is a relatively small financial hit for Apple, whose profits since 2014 have eclipsed $700 billion. This economic momentum continues to drive the company’s market value, which IndexBox reports to be approximately $3.7 trillion.

In related developments, a similar lawsuit is still pending against Google for alleged unauthorized data collection by its Android virtual assistant. As the debate on digital privacy continues, consumers are advised to remain vigilant and consider disabling voice-activated features if privacy concerns arise. For Apple users, Siri can be turned off through the device settings to prevent unauthorized recordings.

Source: IndexBox Market Intelligence Platform