A hit on beloved Apple as 'eavesdropping' and 'spying' get associated with US$95m Siri settlement?

Apple has declared that it has not sold data collected by its voice assistant Siri, or used it to build profiles meant to be marketed to. The statement comes shortly after settling a lawsuit that alleged these practices. On 31 December 2024, the tech giant agreed to pay US$95 million to settle a class action lawsuit in which plaintiffs claimed that it made unauthorised recordings of their private conversations after they activated Siri unintentionally, and disclosed these conversations to third parties.

In a statement released last Wednesday (8 January), Apple declared: “Apple has never used Siri data to build marketing profiles, never made it available for advertising, and never sold it to anyone for any purpose. We are constantly developing technologies to make Siri even more private, and will continue to do so." 

Meanwhile, Apple outlined its measures for protecting user data, which include minimising the amount of data collected for Siri requests, utilising on-device processing whenever possible, and providing built-in intelligence through private cloud computing. "Apple does not retain audio recordings of Siri interactions unless users explicitly opt in to help improve Siri, and even then, the recordings are used solely for that purpose. Users can easily opt out at any time," the statement read. 

Apple's Siri lawsuit made headlines across global publications with media intelligence firm CARMA stating that it saw a total of 95.6K mentions globally at the time of writing. The sentiments of conversations about Apple were 21.2% negative. Some keywords associated with the lawsuit settlement include "listening", "eavesdropping", "privacy", "recordings", "marketing", "spying", amongst others.

While Apple has long positioned itself as a staunch defender of privacy, often contrasting itself with competitors facing scrutiny over data handling practices, the allegations of eavesdropping and sharing of voice recordings with advertisers challenge the very foundation of Apple's commitment to user privacy.

Despite Apple reiterating that it has never sold data collected by its Siri voice assistant, this settlement is likely to have a significant impact on global consumer trust in Apple, explained  Vivian Fok, managing director, Strategic Communications Consultants (SPRG). She added:

Customers may feel betrayed, particularly given Apple's strong advocacy for privacy as a fundamental human right.

“If consumers perceive [the settlement] as a compromise in their privacy, they may reassess their loyalty to the brand, potentially seeking alternatives that prioritise user confidentiality,” she added. 

Adding to the conversation David Ko, managing director, RFI Asia said that the brand might face heightened scrutiny regarding its data collection practices and privacy policies and “users might become more vigilant and critical" of how their data is handled, which could further erode trust - if they perceive a lack of transparency.

Will brand trust really take that big a hit?

Despite the current allegations and the settlement, it is safe to say that Apple has been lauded as one of the leading brands when it comes to garnering the love of consumers. Consistently, the brand has retained its crown as the world’s most valuable brand, for the second year in a row, in the Kantar BrandZ Most Valuable Global Brands Report 2023.

With a brand valuation of US$880 billion, Apple has proven resilient in the face of testing market conditions, justifying premium prices with positive perceptions, and proving that meaningful, different and salient brands are best placed to weather global economic disruption, said the report.

As such, Smitha Virik, head of client services, TEAM LEWIS APAC said an isolated event such as this incident alone will not erode people’s trust in Apple. She said: 

The more trusted a brand is, the more willing consumers are to share their data. Many consumers are aware that companies are using their data in exchange for driving more value for individuals and giving them more choices.

While Apple has effectively communicated its commitment to user privacy through pop-up messages on its devices and in its advertising, it now needs to strengthen its communications strategy to ensure these messages are reflected across all pillars of content and communication platforms, said Virik. Additionally, it should continue educating consumers about its privacy policies. 

Users can’t trust you if they don’t understand what you’re up to, so making the exchange transparent will be increasingly important in retaining long-term brand trust.

The route to rebuilding trust

To effectively convey its commitment to user privacy moving forward, industry players MARKETING-INTERACTIVE spoke to agreed that Apple should adopt a multi-faceted strategy focused on enhancing transparency, launching educational initiatives, providing user empowerment tools, fostering community engagement, and maintaining consistent messaging. 

Apple can enhance transparency by providing clear and accessible information about its privacy policies and practices, said RFI Asia’s Ko. This includes regularly updating users on how their data is collected, used, and protected, as well as publishing detailed reports on data requests from governments and third parties. Such transparency reinforces Apple's stance on user privacy and builds trust with its customers, he explained.

Moreover, user empowerment needs to be a focus. Ko added that should Apple continue to develop and promote tools that empower users to control their data, it would signal a change in tide.

"Enhancing features such as app tracking transparency and privacy nutrition labels will give users insight into how their data is used and allow them to make informed choices. Providing straightforward options for managing privacy settings across devices and services will ensure users feel in control of their personal information,” he said.  Last but not least, educational initiatives will also help users understand privacy features and how to utilise them effectively.

SPRG's Fok echoed Ko's sentiments, suggesting that Apple should undertake proactive outreach efforts, such as public service campaigns that highlight privacy features and educate users on safeguarding their information. But before embarking on these measures, Apple must demonstrate accountability by promptly addressing any privacy breaches and continuously refining its policies.

By integrating privacy into the core of its brand narrative and operations, Apple can restore consumer trust and reinforce its reputation as a leader in data protection.

There’s no doubt that data privacy and security remain significant concerns for consumers. In the tech industry, the impact on consumer trust can sometimes be a yes-or-no answer, said Carbo Yu, regional executive director, Sinclair.

This comes as many tech players such as Google also faced a US$5 billion consumer privacy lawsuit which raised concerns across the globe. As part of the lawsuit, Google was accused of secretly tracking the internet use of millions of users who thought they were browsing "privately" with "Incognito" mode on Google Chrome browser, according to Reuters.

“Plus, as AI integration becomes increasingly pervasive in our daily routines, consumer acceptance of data sharing and automation is indeed rising.”

In a border context, Sinclair’s Yu said the key question is whether brands have taken proactive and preventative measures, along with transparent communication, to address potential concerns before they escalate. 

“By consistently providing opt-out options and empowering users to make well-informed choices about their privacy, brands can foster trust and shape the perception that consumers are in control of their data, actively participating in data protection practices rather than being passive observers,” she added. 

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