The FTC announced that it had completed a $7 million settlement. H&R Block.
Federal Trade Commission (FTC) announced The settlement was made on Wednesday (January 8) as part of a larger agreement with tax preparation firms. The company has agreed to make a number of changes to its business practices ahead of the 2025 tax filing season.
The commission last year accused H&R Block of unfairly requiring customers to contact customer service if they wanted to downgrade to a cheaper H&R Block product. Regulators also said the company improperly deleted data previously entered by users and made false claims about “free” tax filing.
“The settlement requires H&R Block to make it easier for consumers to downgrade products and eliminate its practice of permanently deleting data previously entered by consumers upon downgrade,” the FTC said. ” he said. “By February 15, 2025, the company will use chatbots and other automated means to offer products to consumers instead of calling customer service or chatting with a live customer service agent. It is mandatory to be able to downgrade.
In addition to paying a $7 million settlement, the agreement also requires H&R Block to stop permanently deleting information previously entered by consumers by the 2026 tax season. In addition, H&R Block must disclose in its “free” advertising the percentage of taxpayers who are eligible to use the “free” product, or that the majority of taxpayers are not eligible.
In a statement to PYMNTS on Wednesday, H&R Block said: “H&R Block takes pride in providing high-quality online tax preparation products to consumers and has never had an issue with this issue. Many of the changes in the settlement have already been made. We are pleased to be rescinding this so that we can focus on serving our customers during the 2025 tax season.”
Also this week, the FTC settled complaints against gig economy platforms. angi serviceis required to pay $2.95 million and make “substantial” changes to its business practices.
“Handy Technologies relied on inflated and false revenue claims to lure employees to its platform,” FTC Director of Consumer Protection Samuel Levin said in a news release. “We then deducted the improperly disclosed fines and fees from their wages.”
When contacted by PYMNTS, a Handy spokesperson said that while the FTC's allegations are unwarranted, the company chose to settle in order to “put an end to the matter” and focus on its business.
“While we were prepared to file a lawsuit, we have reached an agreement with these parties to close this matter and return to focusing 100% on supporting our customers, the small businesses that help Americans care for and maintain their homes. “I chose to tie the knot,” he said in a statement.
