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Apple Faces Advertising Crackdown: NAD Calls for Change


Apple Recommended to Discontinue or Modify Advertising Claims for Apple Intelligence Features

A recent review by the National Advertising Division (NAD) has led to recommendations that Apple Inc. modify or discontinue certain advertising claims regarding the availability of features associated with its AI-powered Apple Intelligence tool in the US, as reported by a press release from GlobeNewswire.

The NAD, part of BBB National Programs, conducted an inquiry into express and implied claims made on Apple’s website and promotional materials for the iPhone 16 and iPhone 16 Pro. These claims conveyed the availability of certain Apple Intelligence features, including Priority Notifications, Image Generation tools, ChatGPT integration into Siri, and Writing Tools, among others.

According to the NAD’s findings, Apple’s unqualified "Available Now" claim, positioned prominently on its Apple Intelligence webpage, reasonably conveyed that all listed features were available at the launch of the iPhone 16 and iPhone 16 Pro. However, the NAD found that these claims were not properly supported at the time they were first made, as the features were launched in staggered software updates between October 2024 and March 2025.

The NAD also criticised Apple’s disclosures, such as footnotes and small-print disclosures, for not being sufficiently clear and conspicuous, nor close to the triggering claims. While the features are now available, the NAD recommended that Apple avoid conveying the message that features are available when they are not.

In a statement, Apple Inc. said, "While we disagree with the NAD’s findings related to features that are available to users now, we appreciate the opportunity to work with them and will follow their recommendations," as quoted in the GlobeNewswire article.

The NAD also reviewed claims that Apple Intelligence enabled new Siri functionality, including onscreen awareness, personal context, and cross-app actions. Apple informed the NAD that these Siri features would not be available on the original timeline and that it had updated its promotional materials accordingly.

The NAD’s recommendations are part of its marketplace monitoring program, aimed at ensuring the truthfulness of advertising across the US. As noted by the GlobeNewswire report, the National Advertising Division provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising and promoting fair competition for business.

BBB National Programs, the parent organisation of the NAD, is a non-profit organisation that has been enhancing consumer trust in business for over 50 years. Its programs provide third-party accountability and dispute resolution services, addressing existing and emerging industry issues.

For more information on BBB National Programs and the National Advertising Division, visit bbbprograms.org. The full text of NAD, National Advertising Review Board, and Children’s Advertising Review Unit decisions can be found in the case decision library.

The National Advertising Division’s review of Apple’s advertising claims highlights the importance of accuracy and transparency in advertising, particularly when it comes to emerging technologies like AI. As the use of AI continues to grow, it is essential for companies to ensure that their advertising claims are truthful and not misleading, and for regulatory bodies like the NAD to monitor and address any potential issues.

In conclusion, the NAD’s recommendations to Apple serve as a reminder of the need for companies to be accurate and transparent in their advertising claims, and for regulatory bodies to continue to monitor and address any potential issues in the marketplace. By doing so, consumers can make informed decisions, and businesses can compete fairly and honestly.

For those interested in learning more about the National Advertising Division and its role in regulating advertising, further information can be found on the BBB National Programs website. Additionally, the case decision library provides a comprehensive record of the NAD’s reviews and recommendations, offering valuable insights into the organisation’s work and the advertising industry as a whole.

By providing independent self-regulation and dispute resolution services, the National Advertising Division plays a crucial role in promoting fair competition and protecting consumers. Its work helps to ensure that advertising is truthful and not misleading, and that companies compete on a level playing field.

The NAD’s review of Apple’s advertising claims is just one example of its ongoing work to regulate advertising and promote fair competition. As the advertising landscape continues to evolve, the NAD will remain a vital part of the regulatory framework, helping to ensure that advertising is accurate, transparent, and truthful.



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