Apple has agreed to pay $95 million (£76m) to settle a lawsuit accusing iPhones of listening to owners’ conversations.
The company faced claims it used its virtual assistant, Siri, to eavesdrop on people through their phones without consent.
Apple filed the proposed settlement in federal court in Oakland, California, on Tuesday to end the five-year-old case.
According to the complaint, Apple allegedly triggered Siri secretly to record conversations on iPhones and other Siri-equipped devices for more than a decade.
Siri is only supposed to respond when a user says the wake phrase, “Hey, Siri.”
The lawsuit alleges Apple then handed the recordings to advertisers, helping them target consumers more likely to buy their products.
Two plaintiffs say they saw ads for Air Jordan sneakers and Olive Garden restaurants after mentioning those brands in conversation.
Another plaintiff claims he received ads for a named surgical treatment after discussing it privately with his doctor, Reuters reports.
Apple denies the allegations, and the settlement does not admit any wrongdoing.
The deal must receive approval from U.S. District Judge Jeffrey White.
Lawyers proposed a court hearing in Oakland on February 14 to review the terms.
If approved, owners of an iPhone or other Siri-enabled Apple device between September 17, 2014 and the end of last year could file claims.
Consumers could receive up to $20 per device, with a cap of five devices per person.
The payout could change based on how many people claim. Court papers estimate only 3–5% of eligible consumers will file.
Apple has recently highlighted privacy as a priority, with CEO Tim Cook calling it a “fundamental human right.”
Whatever Apple pays would be minute compared with the $705bn in profits it has earned since September 2014.
Reuters notes the proposed $95 million settlement equals roughly nine hours of Apple profit.
Consumer lawyers had argued Apple could face about $1.5bn in damages if found guilty of wiretapping and other privacy-law violations at trial.