TurboTax maker Intuit faces FTC ban on advertising “free” services

Intuit is once again facing fallout from misleading advertising that claims to offer “free” services. Federal Trade Commission (FTC). Prohibiting the TurboTax manufacturer from claiming that the services are free when most customers will have to pay. “We find that Intuit’s in-face advertising conveyed, expressly or impliedly, the message to reasonable consumers that they could submit their taxes to TurboTax for free.” The FTC concluded. “Respondent’s free filing claims are false for the approximately two-thirds of U.S. taxpayers who do not meet Intuit’s simple tax return requirements and are therefore not eligible to file free with TurboTax.”

The FTC went on to emphasize that companies can’t describe a product as “free, free, free” because most people will be “fee, fee, fee”—a warning just waiting to be turned into a scarecrow. The regulator said Intuit should make clear what percentage of customers will be eligible for free services. Meanwhile, Intuit contested the decision, saying, “We believe we will prevail when the matter goes back to a neutral authority.”

Intuit This time, he is not required to pay for his violations. However, the FTC’s ban comes nearly two years later Intuit received a $141 million settlement with all 50 states and the District of Columbia. The company had to refund about 4.4 million customers because it “duped millions of low-income Americans into paying for tax services that should have been free.” New York Attorney General Letitia James informed about this on time.

Intuit lured customers with the promise of free tax preparation, then charged them when it came time to file. It also hid the IRS Free Filing page from search engine results for tax season (and withdrew from the Free File Alliance in 2021). Intuit has not admitted any wrongdoing and expressed no remorse test statement.

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