Consumer News: Apple AI's not so smart, class action lawsuit charges

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Consumer Daily Reports

Details: Written by Consumer Affairs News; Category: Consumer Daily Reports; Published: 15 April 2025; Created: 15 April 2025; Last Updated: 15 April 2025

Canadian suit says Apple misrepresented the iPhone's AI capabilities

April 14, 2025

Lawsuits allege Apple misled buyers about AI capabilities on iPhone 16
Class-action suit says users paid a price premium for features that didnt exist
Siris promised upgrades still missing months after launch

Apple is facing mounting legal trouble over its AI marketing claims, with two new lawsuits accusing the tech giant of falsely advertising the capabilities of its flagship iPhone 16, particularly its much-hyped "Apple Intelligence" and upgraded Siri assistant.

A Canada-wide class-action lawsuit, first reported by the Vancouver Sun, claims Apple made misrepresentations and/or misleading statements to convince consumers to purchase the iPhone 16 even though its key AI features werent ready at launch.

Consumers paid an unlawful price premium based on artificial intelligence features that did not exist, the lawsuit alleges.

Siris smarter self still missing

When Apple unveiled the iPhone 16 in September 2024, it promised a new era of intelligent personal assistance, with Siri as the centerpiece. But while some minor AI features rolled out with iOS updates in October and December, the more powerful Siri experience including contextual awareness and in-app control is still nowhere to be seen.

Apples software chief Craig Federighi had teased in September that the first wave of Apple Intelligence features would arrive "a month later," with more rolling out gradually. However, by years end, Apple quietly acknowledged that many of its most anticipated AI capabilities were still under development.

The lawsuit claims Apple was eager to promote these features to stay competitive in the AI arms race, even if they werent ready. It warns that by the time the features finally arrive, they may no longer be groundbreaking, as rivals like Samsung have already integrated similar tools.

Competitors leap ahead

Indeed, Samsungs Galaxy S25 Ultra, launched earlier this year, has already impressed reviewers with its Google-powered AI assistant capable of screen awareness and cross-app functionality features Apple had touted but has yet to deliver.

In the growing battle for AI dominance in smartphones, the legal filings accuse Apple of using empty promises to boost iPhone 16 sales during a critical moment in the market.

Asecond lawsuit inCalifornia makes the same argument, saying Apple "aggressively promoted" the new features and "promised a revolutionary product that would change the way consumers use their phones."But nearly a year after Apple unveiled Apple Intelligence at WWDC 2024, the functions "still do not exist," it alleges.

Apple has not yet commented publicly on the lawsuits.

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Posted: 2025-04-14 22:02:14

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Consumer News: What's behind rising insurance premiums? Surging advertising costs, for one
Mon, 17 Nov 2025 23:07:07 +0000

Geckos, women named Flo and good neighbor insurance salesmen are a big part of the pressure on insurance costs

By James R. Hood of ConsumerAffairs

November 17, 2025

Advertising costs are climbing faster than premium growth at some major auto insurers, pressuring expense ratios and underwriting margins.
Progressives ad spend soared above $1.3 billion per quarter in 2025, offset only by its strong premium growth.
GEICOs expenses rose sharply without similar premium gains, raising concerns about impacts on rates and profitability.

To hear insurance companies tell it, the natural disasters spawned by climate change are driving up their costs and forcing them to raise premiums and refuse to renew policies in some higher-risk areas. But other analysts say that surging advertising costs are as much of a problem as surging storms.

For major insurers, loss trends are improving but advertising spending is rising faster than premium growth. A recent Insurance Journal articlenotes that while both Progressive and GEICO benefited from declining auto claims in the third quarter, marketing expenses ate into revenue growth.

Progressive's third-quarter advertising expenses jumped $1.3 billion, a 10 percent increase over a year earlier, but a 20 percent jump in premium revenue helped to compensate. GEICO, on the other hand, experienced similar increased advertising and marketing expense with premium gains of only 5 percent.

S&P noted that GEICOs underwriting expenses have risen nearly 40 percent for two consecutive quarters, though its overall expense ratio still sits below long-term norms.

"Rising premiums and big profit announcements highlighta majorproblem: governmentsrequireconsumers to buyinsurance,butstatelawmakers andregulatorsdontdo enough tokeepit affordable," theConsumer Federation of America, a frequent critic of the insurance industry, noted recently.

"[Regulators]dont reject excessive premium increases, they dont aggressively fight unfair discrimination in insurance, and they dont hold insurance companies accountable for unfairly delaying and denying claims," said Michael DeLong, a research associate at CFA.

Does advertising still work?

Some industry analysts are beginning to question the heavy spending on advertising. As mass-market media outlets like newspapers and network television continue to lose audience, companies maintain and even increase their spending levelswithout evidence that higher spending is generating faster premium growth. GEICOs ad outlays for 2025 could approach $1.9 billion, roughly 35 percent above last years level, they noted.

Progressive faces a similar dynamic. Advertising spending soared in every quarter of 2025up 86 percent in Q1, 35 percent in Q2, and 10 percent in Q3 compared to the same periods in 2024yet its direct-auto quote volume fell 4 percent in the third quarter. New applications were flat in its direct business and down 5 percent in the agency channel.

Despite the slowdown, Progressive reported solid premium growth of 12.2 percent and policy growth of 15.1 percent. On the companys earnings call, CEO Tricia Griffith said the carrier will keep using advertising as a lever to grow, even in an increasingly competitive market.

This is when the fun starts, Griffith said, noting that Progressive is targeting Robinsonshouseholds that bundle auto and home policiesand sees a $230 billion opportunity there, Insurance Journal reported.

After raising rates about 55 percent between 2022 and 2024, Griffith said future increases will be more moderate, with some rate decreases already occurring in 10 states. Progressive aims to stimulate growth in 33 states identified as growth opportunities or volatile markets.

With ad spending now rising faster than new business growth for both Progressive and GEICO, analysts say the industry faces a delicate balancing act. High marketing budgets risk adding pressure to premiums and expense ratios at a time when customers are more price-sensitive and competitive shopping is increasing.

Consumers starting to notice

Financial analysts aren't the only ones taking note of rising insurance costs and shrinking availability: consumers are starting to notice too, said CFA's DeLong: "Consumers, consumer advocates, and policymakersare paying increased attention to insurance.Higher insurance premiums, insurance company misbehavior, and company withdrawals have brought a lot of attention to the insurance market,creating a spotlight thatprovidesconsumer advocates an opportunity topressforbadly neededreformsthat willimprove the current situation."

That discontent is starting to drive consumers to be more aggressive in shopping for insurance. A recent survey found that 16% of policyholders went policy-shopping in Q2 of 2024 compared with 30% in July 2025. Besides shopping for cheaper coverage, a growing number of consumers are also accepting higher deductibles, less coverage or simply dropping insurance altogether.

Consumer News: Stronger pregnancy warnings needed on popular antidepressants, group says
Mon, 17 Nov 2025 23:07:07 +0000

Prozac, Paxil, Zoloft and others cross the placenta and cab cause problems for newborns

By James R. Hood of ConsumerAffairs

November 17, 2025

Consumer group urges FDA to add stronger pregnancy warnings to popular antidepressants
Petition cites risks to newborns from late-pregnancy exposure to SSRIs and SNRIs
Advocates call for clearer guidance, safety studies, and careful dosingnot abrupt withdrawal

Public Citizen is pressing the U.S. Food and Drug Administration (FDA) to strengthen the pregnancy warnings on widely used serotonin reuptake inhibitor (SRI) antidepressants, arguing that current drug labels fail to adequately convey risks to newborns.

The consumer advocacy group filed a petition late Friday asking the agency to require new, class-wide warnings for both selective serotonin reuptake inhibitors (SSRIs) such as Prozac, Paxil and Zoloft and serotonin-norepinephrine reuptake inhibitors (SNRIs) like Effexor XR and Pristiq.

Azza AbuDagga, Ph.D., a health services researcher with Public Citizens Health Research Group who prepared the petition, said the science is clear that these drugs readily cross the placenta. Therefore, it is critical that the labeling of these drugs convey balanced, evidence-based information about their potential risks, she said. This will help expectant mothers and their clinicians make informed decisions regarding their use during pregnancy.

Widespread use of antidepressants during pregnancy

SSRIs are among the most commonly used medications in pregnancy. A 2016 FDA-funded study found that at least 6% of pregnant women in the U.S. take an SSRI, meaning more than 215,000 fetuses are exposed to these medications each year.

Public Citizen emphasized that its petition focuses solely on SRI use during pregnancy and is not tied to broader political movements or public debates surrounding antidepressants.

Group seeks stronger warnings about neonatal risks

A central request in the petition is the addition of more explicit warnings about poor neonatal adaptation syndrome (PNAS) a cluster of symptoms that can occur in newborns exposed to SRIs in the third trimester. PNAS can involve breathing difficulties, feeding problems, vomiting, low blood sugar, irritability, constant crying, temperature instability and, in rare cases, seizures. Public Citizen stresses that these symptoms are common and may last longer than the first two weeks of life.

To manage these risks, the petition advises that pregnant patients taking SRIs plan to deliver in a hospital where neonatology expertise is readily available.

The organization also asks the FDA to add a warning against combining SRIs with benzodiazepines or other central nervous system depressants late in pregnancy, noting that such combinations may exacerbate PNAS and pose additional dangers to newborns.

Call for long-term safety studies

Public Citizen wants the FDA to require drug manufacturers to conduct large-scale post-marketing studies assessing both short- and long-term outcomes of prenatal exposure to SRIs. Until such research is completed, the petition argues, labels should advise that these medications be used in pregnancy only when the potential benefits outweigh the potential risks, including the risks of untreated mental illness.

AbuDagga noted that while some animal studies have linked prenatal SRI exposure to neurodevelopmental issues, human research is still limited and inconclusive. It is important to exercise caution with the use of SRIs during pregnancy until further research provides more conclusive evidence, she said. At the same time, it is essential to treat mental illness during pregnancy whenever it occurs, because failing to do so causes well-documented harms.

Advocates urge careful dosing and against sudden discontinuation

If antidepressant treatment during pregnancy is deemed necessary especially for patients who were taking SRIs prior to conception the petition recommends using the lowest effective dose for the shortest appropriate duration, along with more frequent monitoring of both mother and child.

The group warns strongly against abrupt discontinuation, saying it can trigger severe withdrawal symptoms or a relapse of the underlying mental health condition.

Public Citizen said its request to the FDA reflects current research and aims solely to improve maternal and fetal health outcomes.

Consumer News: Why Target workers are being told to smile from 10 feet away
Mon, 17 Nov 2025 20:07:07 +0000

Is this friendly faces or retail theater?

By Kyle James of ConsumerAffairs

November 17, 2025

What 10-4 is: Training that tells Target employeesto smile or wave within ~10 feet and greet/offer help within ~4 feet
Why Targets doing it: To create a warmer, Disney-like experience, lift sluggish sales, and likely make potential shoplifters feel more watched
What it means for you: Expect more greetings as you walk the aisles, but you can still just nod, say Im just looking, and judge Target on whether lines and store organization actually improve

Target is rolling out a new internal training program called 10-4 that tells store employees exactly how to interact with shoppers as they walk the aisles. Right down to when they should smile, wave and even start a conversation.

The company says the program is about kindness and generosity and making visits feel more magical, and its arriving just as retailers head into whats likely to be the first-ever $1 trillion U.S. holiday shopping season.

It also comes as Target tries to pull out of a sales slump under incoming CEO Michael Fiddelke, who takes over in February 2026 with a mandate to improve store experience and reignite growth.

What is Targets 10-4 training?

According to Target, 10-4 is an internal team-member training program, not a formal policy in the employee handbook. It was shared with store workers ahead of the 2025 holiday season.

Under the guidance:

At about 10 feet: Employees are trained to smile, make eye contact, and wave if theyre near a shopper and to use friendly, approachable and welcoming body language.
At about 4 feet: Theyre told to personally greet the guest, keep smiling, and start a warm, helpful interaction. For example, asking how the shoppers day is going or whether they need help finding something.

Target has stressed to the media that these are guidelines within training, not a disciplinary rule labeled policy.

A Target spokesperson told Fox Business that with this enhanced training focused on kindness, the goal is to make each visit feel more special and show appreciation for store workers efforts.

How could 10-4 change your Target run?

If the program sticks and is consistently followed, shoppers may notice:

More greetings, more often. Instead of just one Hi, welcome to Target at the front, you may get quick check-ins from staff in multiple departments as you walk the aisles.

Fewer invisible employees. The idea is that if a worker is near you, theyre supposed to acknowledge you even if theyre stocking shelves or walking by on their way somewhere else.

A more Disney-like script. The smile-within-10-feet concept is similar to guest-service norms that have existed for years at theme parks and some other big retailers, but Targets version is unusually explicit and has been widely publicized.

How are workers and shoppers reacting?

Because 10-4 leaked quickly into news reports and social media, reaction has been mixed:

Some employees say online that the smile-and-wave expectation feels forced or awkward, especially when stores are busy and theyre juggling multiple tasks. Employees also said they can easily tell when a shopper would not be bothered versus those that are looking for some interaction.

While not specifically noted, I think theres an anti-theft element to this as well. Shoppers with bad intentions are less likely to steal if they have employees acknowledging them and paying attention to them.

Also, some shoppers like being acknowledged while others say they prefer to browse without being approached unless they clearly ask for help.

Target, for its part, points to its research suggesting that key consumer metrics improve when guests are greeted or acknowledged, and argues that a warmer in-store atmosphere can help stop the sales slide.

What this means for you as a shopper

For now, heres the practical impact you might notice:

Expect more check-ins. You may get a smile or wave just because an employee walked within 10 feet of you. Thats the training, not someone trying to hover while you shop.
You dont have to engage. Theres obviously no requirement for shoppers to respond. A quick nod or Im just looking is enough if you dont want help.
Watch whether the basics improve. The bigger test of Fiddelkes turnaround isnt how many smiles you see, but whether wait times and store organization actually gets better during peak holiday crowds.

Consumer News: Wheelchair restraint failures, fire risks dominate this week's Auto Safety Recall Derby
Mon, 17 Nov 2025 20:07:06 +0000

Air bag explosions, engine fires also created several recalls

By News Desk of ConsumerAffairs

November 17, 2025

This weeks Auto Safety Recall Derby spans everything from school buses and commercial trucks to luxury SUVs, off-road icons, and even a popular Yamaha scooter. While air bag problems and fire risks remain recurring themes, the most striking pattern is the sheer number of vehicles recalled for wheelchair restraint retractor failuresan issue that appears across multiple bus manufacturers, potentially affecting fleets nationwide.

The first cluster of recalls comes from Corp. Micro Bird, which issued multiple notices (25V751, 25V752, 25V770) covering G5 and T-Series school and transit buses from model years 20232026. The problem: wheelchair restraint retractors that may not lock properly. If the system fails during a crash or sudden stop, a wheelchair user could be thrown, resulting in serious injury. Similar defects appear again later in the week involving Coach and Equipment Phoenix buses (25V772), Nova Bus LFS models (25V773), and two major recalls from Forest River Bus (25V779, 25V780). In all, wheelchair-restraint failures make up five separate recall events, suggesting a possible upstream supplier or design issue affecting multiple OEMs.

Commercial vehicles also feature prominently. McNeilus Truck & Manufacturing announced two recalls (25V754 and 25V755) for missing or non-compliant reflex reflectors and rear clearance lightsseemingly small omissions that still violate federal visibility standards and can increase crash risk. Meanwhile, Daimler Trucks North America issued one of the weeks more serious heavy-truck recalls (25V760), warning that loose axle clamp fasteners in certain Freightliner and Western Star models could cause a loss of vehicle control.

Two separate recalls from Wabash National Corporation (25V762 and 25V774) involve insufficient rear-impact protection on Stepdeck trailers. Non-compliant underride guards are a high-stakes safety issue because they protect passenger cars during rear-end collisions with large trailers.

On the light-vehicle side, General Motors issued multiple recallsincluding one very serious one. Recall 25V764 warns that roof-rail air bag inflators in the 2014 Buick Verano and Chevrolet Cruze may rupture, an echo of past inflator crises. GM also reported a power brake assist failure risk (25V768) in Chevrolet Silverado 4500/5500/6500 trucks due to damaged wiring harnesses, and a defect that may prevent the front passenger air bag from deploying (25V769) in the 2026 GMC Hummer EV lineup.

Chrysler (FCA US) added two high-impact recalls: 25V765 warns that driver air bags may fail to deploy in 20212022 RAM 15005500 trucks, while 25V766 involves plug-in hybrid 4xe models of the Jeep Grand Cherokee and Jeep Wrangler, where engine failure may lead to engine fires or a sudden loss of drive power.

Toyota Motor Engineering & Manufacturing issued a large recall (25V767) for the Lexus GX, Lexus LX, and Toyota Tundra, noting that debris inside the engine could cause an engine stallraising risks especially at highway speeds or in heavy traffic.

In the RV and powersports sector, Keystone RV recalled Voltage models (25V771) because generator fuel lines may have been incorrectly installed, potentially increasing fire risk. Winnebago Towable recalled Micro Minnie trailers (25V776) for a cooktop flame that may invert, and Yamaha announced a major recall for the 20182022 XMAX scooter (25V778), warning that a loose camshaft bolt could cause engine failure.

Taken together, this weeks recalls touch nearly every corner of the vehicle marketfrom school buses and heavy-duty work trucks to high-end SUVs, pickups, RVs, and scooters. Owners and fleet operators should check their VINs promptly and schedule free repairs where needed.

Prevention Tips: Staying Ahead of Recalls

Check for recalls at least twice a year. Dont wait for a letter that might never come.
Prioritize school buses and transit vehicles. Fix wheelchair restraint, seat belt, and brake issues immediately.
Dont ignore lighting and reflector recalls. Visibility failures are a major cause of heavy-vehicle crashes.
For hybrid and EV owners, monitor for warning lights, smoke, strange smells or sudden power loss; park outside if a fire-risk recall is pending.
Listen to your vehicle. Unusual noises, pulling, vibration or changes in braking or steering are warning signs.

What To Do If Your Vehicle Is Affected

To find out if your specific vehicle is part of a recall, enter your license plate or vehicle identification number in our Recall Look-up Tool. If your vehicle has an unrepaired recall, contact your local car dealership and make an appointment to get your vehicle fixed for FREE.

Locate your VIN (on your registration, insurance card, or at the base of the windshield).
Enter your VIN or license plate number into the Recall Look-up Tool.
If an open recall appears, call your dealership to schedule a repair.
Repairs for safety recalls are free by federal law, regardless of vehicle age or ownership changes.
If parts are not yet available, ask to be put on a priority list and request a loaner or alternate transportation for severe safety issues.
Report unresponsive dealers or recurring problems to NHTSAs Vehicle Safety Hotline.

Consumer News: Prices for Ozempic and Wegovy continue to fall
Mon, 17 Nov 2025 17:07:06 +0000

But only for consumers who pay cash, not with insurance

By Mark Huffman

of ConsumerAffairs

November 17, 2025

Novo Nordisk announced it is cutting the cash-pay pricing for its popular semaglutide drugs: Wegovy will now be offered at $349 per month for most doses and for cash-pay patients, while Ozempic will be similarly priced (with the highest 2 mg dose remaining at $499).
The company is also launching an introductory offer: new cash-pay patients for the lowest two doses of Wegovy or Ozempic may pay as little as $199 per month until March 31, 2026.
While the price cuts aim to broaden access and counter competition from other GLP-1 and obesity treatments (notably Zepbound from Eli Lilly), medical experts warn that even at $349 a month many uninsured or under-insured patients will still face affordability issues.

Earlier this year Novo Nordisk lowered the out-of-pocket cost to consumers who were paying cash for GLP-1 drugs Ozempic and Wegovy, rather than using insurance. Those costs are now going even lower.

The changes come as the company navigates mounting competitive pressure, rising demand and the broader debate around pharmaceutical pricing and access.
For patients without insurance covering these medications, the new pricing structure breaks down as follows:

Wegovys most common monthly cost for cash-pay patients drops from the earlier figure (around $499 or more) to $349 a month for most doses.
Ozempic, primarily a diabetes drug but also used off-label for weight-management in some cases, is now offered for $349 a month for most doses under the cash-pay program except the highest (2 mg) strength, which remains at $499.
On top of that, for new cash-pay patients using the lower two dose strengths of either drug, theres a time-limited introductory price of $199 per month (until March 31, 2026) through certain channels.
The offer is available through Novos direct-to-consumer pharmacy service (NovoCare) and partners such as GoodRx, as well as participating home-delivery and retail pharmacy arrangements.

Competitive and access pressures

Novo Nordisks decision comes amid several converging pressures:

Demand for GLP-1 / semaglutide-based treatments has surged in recent years, both for diabetes and obesity, placing strain on supply and raising scrutiny over pricing.
Competitors such as Eli Lilly are expanding in the obesity and weight-management space (for example Zepbound), which prompts Novo to respond more aggressively on pricing and access.
The company also cited a desire to steer patients away from non-approved compounded versions of semaglutide (which may be less safe) by making the official brand versions more accessible.
This strategy reflects a broader trend: direct-to-consumer (D2C) distribution (via NovoCare) and lower list pricing for cash-pay patients as a way to reach populations not well served by insurance coverage.

What this means for patients

For many consumers especially those who are uninsured or whose insurance does not cover obesity-treatment drugs the price drop is likely welcome. A $349 monthly price point brings the cost into a lower tier compared with earlier figures.

However, industry experts caution that it does not automatically mean the treatment is affordable for everyone. According to one analysis, many patients struggle with high monthly drug costs even in the $100-$200 range.

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