Affirmed: Judge Rules That Intuit Misled Customers with “Free” TurboTax Claims
September 8, 2022 | Washington D.C.
A recent ruling by a judge from the Federal Trade Commission (FTC) has found that Intuit Inc., the owner of TurboTax, deceived customers by promoting their software as “free” in their advertising campaigns. Judge D. Michael Chappell concluded that Intuit engaged in deceptive marketing practices in violation of Section 5 of the FTC Act.
The judge’s decision stems from an FTC administrative complaint filed in March 2022, where the agency alleged that Intuit’s pervasive commercials, with repeated emphasis on “free” products, were misleading consumers into believing they could file their taxes for free using TurboTax. In reality, the “free” services were inaccessible to many potential customers.
Chappell noted that the majority of tax filers couldn’t utilize TurboTax’s supposedly “free” option, as it was unavailable to millions of taxpayers. For instance, individuals who receive a 1099 form for gig economy work or those earning farm income were excluded. In 2020, approximately two-thirds of tax filers found themselves unable to access TurboTax’s free product.
The ruling will require Intuit Inc. to abide by strict guidelines to prevent future deceptive practices. Parties involved will receive copies of the order, which will remain in effect for the next two decades. Intuit must maintain meticulous records to ensure compliance with the ruling.
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