FTC Orders Intuit to Cease Misleading Advertising of TurboTax as Free
Background
Intuit, the maker of TurboTax software, has been under fire from the Federal Trade Commission (FTC) for its deceptive advertising practices. The FTC alleges that Intuit misled consumers into believing they could file their taxes for free with TurboTax when most users were ineligible for the free version.
FTC Order
On Monday, the FTC issued an order requiring Intuit to stop advertising its services as free if they’re not free for most of its users. Alternatively, the company will need to reveal the percentage of consumers who qualify for its free services. The FTC also ordered Intuit to clearly disclose the “terms, conditions, and obligations” required for consumers to use their “free” goods or services.
Intuit’s Response
Intuit has announced its intention to appeal the FTC’s order. The company claims its advertising is not misleading and has always made it clear that its free version of TurboTax is only available to certain taxpayers. Intuit also argues that the FTC’s order is too broad and will harm consumers by making it more difficult for them to find free tax preparation software.
Impact on Consumers
The FTC’s order is likely to have a significant impact on consumers who use TurboTax to file their taxes. Many consumers who previously believed they could file their taxes for free with TurboTax may now find that they’re ineligible for the free version. This could lead to higher tax preparation costs for these consumers.
TurboTax: Repeat Offender?
This isn’t the first time Intuit has been accused of misleading consumers about its free tax preparation services. In 2020, Intuit agreed to pay $141 million to settle claims by 50 U.S. states and Washington D.C. that it deceived several million customers into buying online products from TurboTax. The settlement also called for Intuit to stop using deceptive slogans like “TurboTax Free is free. Free Free Free Free.”
Conclusion
The FTC’s order against Intuit is a significant step in protecting consumers from misleading advertising. The order requires Intuit to be more transparent about the terms and conditions of its free tax preparation services. This information will help consumers make more informed decisions about which tax preparation software to use.
Call to Action:
If you’re considering using TurboTax to file your taxes, carefully read the terms and conditions of the free version to ensure you’re eligible. You may also want to consider using a different tax preparation software that offers a truly free version.