January 22, 2024 at 04:42PM
The FTC ordered Intuit to stop promoting its software as “free” unless it’s truly free for all consumers, following a deceptive advertising campaign for TurboTax. The order prohibits misleading ads and requires clear disclosure of eligibility and terms for free products. Intuit is also barred from providing false information about its products and services.
Summary:
The U.S. Federal Trade Commission (FTC) has issued an order against Intuit, the maker of TurboTax, to cease promoting their products and services as “free” unless they are truly free for all consumers. The order is a result of the FTC’s investigation into Intuit’s deceptive advertising campaign, which falsely marketed TurboTax as a “free” product. The FTC found that the majority of tax filers in the U.S. were not eligible to use TurboTax for free as advertised, and were instead faced with charges when filing. The order prohibits Intuit from running ads for “free” tax products and services for which many Americans are ineligible. It mandates clear and conspicuous disclosure of the percentage of taxpayers eligible for the claimed free product or service, or the disclosure that a majority of consumers do not qualify. Furthermore, Intuit is required to disclose all terms, conditions, and obligations for obtaining the “free” product or service. The order also prohibits Intuit from providing false information on key aspects of its products and services, such as pricing, refund policies, consumers’ eligibility for tax credits or deductions, and the capability to file taxes online without relying on TurboTax’s paid service. Lastly, it highlights that Americans with adjusted gross incomes of $79,000 or less can use products available through the IRS’ Free File Program to file federal and state tax returns for free.