The Federal Trade Commission (FTC) ruled Monday that the maker of TurboTax misled customers by claiming that a version of its online tax filing software, for which most customers must pay, was free. .
F.T.C. opinion Intuit's TurboTax Free Edition is sold as a stripped-down version of its paid software for customers making simple returns, but the company says it's not as free as it claims.
“For approximately two-thirds of U.S. taxpayers, Defendants' claims of free filing are false; they do not qualify for Intuit's simplified tax filing and therefore are not eligible to file for free with TurboTax,” the opinion states. It is written in
The company's free services are not available to customers who own small businesses, work as independent contractors, or exceed certain income thresholds, but this distinction is not clearly established in advertising, the FTC said. Stated.
Intuit alleges that it conducted a “pervasive, persistent, and intentional” deceptive marketing campaign designed to lure customers with the promise of free tax filing and drive them toward paid services.
The opinion orders the company to remove misleading language from its advertising materials and better disclose the actual cost of its tax preparation services.
FTC Consumer Protection Director Samuel Levine called the opinion “a major victory for consumers.”
“As the committee has long understood, 'free' is a powerful temptation, and Intuit deployed it in numerous advertisements,” Levine said. Said. “Attempts to justify 'free' claims were often ineffective and unremarkable.”
“This order also sends a message to the entire industry: 'Free' means free, not 'free for some' or 'free for some,'” he continued. Ta. “When companies use the power of 'free' in dishonest ways like Intuit did, they can face FTC enforcement action.”
The Hill has reached out to Intuit for comment.
The FTC's order comes as the IRS moves closer to rolling out its long-awaited free tax filing service. More than a dozen states will make the first tax preparation and filing service developed by the IRS available to certain taxpayers for the 2024 tax season.
Treasury Secretary Janet Yellen boasted About Friday's “impressive” demonstration of free IRS services.
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