The Federal Trade Commission (FTC) ruled Monday that the maker of TurboTax deceived customers by claiming that a version of its online tax filing software for which most customers must pay was free. did.
of The FTC opinion states: Intuit's TurboTax Free Edition is sold as a stripped-down version of its paid software for customers making simple returns, but it's not as free as the company claims.
“Defendants' claims of free filing for approximately two-thirds of U.S. taxpayers are false, as they do not meet Intuit's simplified tax filing qualifications and therefore are not eligible to file for free with TurboTax,” the opinion said. “No,” he said.
According to the FTC, the company's free services are not available to customers who own small businesses, work as independent contractors, or exceed certain income thresholds, although this distinction is not clearly established in advertising. He says there is no.
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 Levin I called that opinion a. “It's a huge win for consumers.”
“As the committee has long understood, 'free' is a powerful temptation, and Intuit deployed it in numerous advertisements,” Levine 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.”
Intuit condemned the FTC's opinion and accused the agency of bias.
“This decision is the result of a biased and broken system in which the commission serves as accuser, judge, jury, and appellate judge all in the same case,” spokesperson Derrick Plummer told The Hill. said in a statement.
“Intuit is appealing this deeply flawed decision, and we believe Intuit will prevail if this matter ultimately returns to a neutral body,” he said.
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 allow certain taxpayers to take advantage of the first tax preparation and filing service developed by the IRS for the 2024 tax season.
Treasury Secretary Janet Yellen boasted an “impressive” demo Free IRS services began Friday.
—Updated at 6 p.m.
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