FTC Sues to Stop 'Deceptive' TurboTax Advertising for Free Tax Service
Did you try TurboTax thinking it was free, only to end up paying a fee?
In a new lawsuit, the FTC claims millions of Americans were duped by deceptive ads for TurboTax’s supposedly free tax-filing service. Allegedly, the ads and other tactics are merely bait to trick consumers into paying for the paid TurboTax product.
“TurboTax is bombarding consumers with ads for ‘free’ tax filing services, and then hitting them with charges when it’s time to file,” says FTC Consumer Protection Bureau Director Samuel Levine. “We are asking a court to immediately halt this bait-and-switch, and to protect taxpayers at the peak of filing season.”
On Monday, the FTC filed a complaint with a US District Court in California, demanding TurboTax’s developer Intuit stop the alleged deceptive advertising practices. The same lawsuit also asks the judge to award appropriate relief, which could entail Intuit paying a major fine if it loses the case.
“As detailed in the complaint, Intuit engaged in a years-long marketing campaign centered on the promise of 'free' services. These ads have run during major events, including the Super Bowl, and have also aired during this year’s NCAA Basketball Tournament,” the FTC said in a Tuesday announcement about the lawsuit.
Many of these ads, along with Intuit’s websites, emphasize the supposed free nature of TurboTax by literally repeating the words “Free, free, free, free.” But once users actually submit all their documents and finish completing all the forms, TurboTax will tell them they don’t qualify for the free service. That’s because the “Turbo Tax Free Edition” product applies to “simple” tax returns covering people who only need to file a Form 1040, according to the FTC.
Other users who need to
Read more on pcmag.com
