February 23, 2024 at 05:21PM
The FTC filed a lawsuit against H&R Block, alleging deceptive advertising for its “free” online tax filing and pressuring users to buy more expensive services. H&R Block’s 70,000 tax pros worldwide cater to a $3.5 billion revenue. The FTC claims the company misleads customers and makes downgrading products and obtaining free services difficult.
Based on the meeting notes, the key takeaways are:
1. The U.S. Federal Trade Commission (FTC) has sued H&R Block over deceptive advertising and pressuring consumers into overpaying for its services related to online tax filing products.
2. The FTC alleges that H&R Block’s online tax filing products lead consumers into higher-cost products, fail to clearly explain coverage, and employ tactics that make it challenging for users to downgrade to cheaper options.
3. Concerns regarding deceptive advertising practices and a lack of clarity on what qualifies as a “simple return” have also been highlighted by the FTC, leading to consumer confusion and frustration.
4. Dara Redler, the Chief Legal Officer at H&R Block, defended the company’s commitment to providing free DIY filing options and resources for all filers, as well as mechanisms for consumers to downgrade to less-expensive DIY products.
5. The FTC’s action against H&R Block aligns with its recent order to TurboTax-maker Intuit to stop promoting its products and services as “free” unless they’re free for all customers.