Connect with us

Hi, what are you looking for?

Editor’s Pick

TurboTax maker barred from advertising ‘free’ services without disclosing who’s eligible

U.S. regulators have barred TurboTax maker Intuit Inc. from advertising its services as ‘free’ unless they are free for all customers, or if eligibility is clearly disclosed.

In an opinion and final order issued Monday, the Federal Trade Commission ruled that Intuit engaged in deceptive practices by running ads claiming consumers could file their taxes for free using TurboTax though many people did not qualify for such offerings.

‘The character of the past violations is egregious,’ reads the FTC commissioners’ opinion, which details Intuit ads across TV, radio and online over the years. ‘Intuit blanketed the country with deceptive ads to taxpayers across multiple media channels.’

In addition to prohibiting Intuit from marketing its products or services as free unless there’s actually no cost for everyone, the FTC’s order requires Intuit to disclose what percentage of consumers are eligible and note if a majority of taxpayers do not qualify.

Terms and conditions to obtain a free good or service must also be clearly disclosed or linked to if ad space is limited, the FTC said in its order. The order also bars Intuit from “misrepresenting any material facts about its products or services,” including refund policies and price points.

In a statement sent to The Associated Press on Tuesday, Intuit said it had appealed what it called the FTC’s “deeply flawed decision.”

“This decision is the result of a biased and broken system where the Commission serves as accuser, judge, jury, and then appellate judge all in the same case,” Intuit stated. The California company later added that it believes it will prevail “when the matter ultimately returns to a neutral body.”

Monday’s opinion and final order upholds an initial decision from FTC chief administrative law judge D. Michael Chappell, who ruled that Intuit violated federal law by engaging in deceptive advertising back in September.

There was no financial penalty in the FTC’s order, but Intuit has previously faced hefty charges over the marketing of “free” services. In a 2022 settlement signed by the attorneys general of all 50 states, Intuit agreed to suspend TurboTax’s “free, free, free” ad campaign and pay $141 million in restitution to nearly 4.4 million taxpayers nationwide.

Settlement checks were sent out last year. Those impacted were low-income consumers eligible for free, federally-supported tax services — but paid TurboTax to file their federal returns due to “predatory and deceptive marketing,” New York Attorney General Letitia James said.

This post appeared first on NBC NEWS

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

With Bitcoin’s (BTC) price quickly re-approaching its all-time high, almost all holders of the digital currency are back in the black. Blockchain market intelligence...

Economy

Circle, USDC’s issuer, has struck a partnership deal with Coincheck, one of Japan’s biggest crypto exchanges – with a view to securing the stablecoin’s...

Economy

In wake of the Pepe Coin (PEPE)’s 40% price pump on Tuesday, profit-taking Pepe holders are shifting funds to a new crypto token for...

News

President Biden said Israel has agreed to a cease-fire in the Gaza Strip during the Islamic holy month of Ramadan, but Hamas is not...

News

Sen. Josh Hawley, R-Mo., is urging global consulting firm McKinsey & Company to hand over ‘comprehensive documentation’ showcasing its past or present contracts with the...

News

House Foreign Affairs Committee Chairman Michael McCaul, R-Texas, is threatening to hold Secretary of State Antony Blinken in contempt of Congress, accusing him of...

You May Also Like

Financial Advisors

[#item_full_content]

Financial Advisors

[#item_full_content]

Financial Advisors

The humongous outbreak of the dreaded coronavirus has brought about a groundbreaking change in what the world perceived as ‘normal’. With an estimated 280,391,189...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 Respect Investment. All Rights Reserved.