Agency: Federal Trade Commission (FTC)Washington
Description:
On March 3, 2022, the Federal Trade Commission (FTC) filed an administrative complaint against Intuit Inc., the maker of TurboTax tax filing software for deceptive practices and advertising of the tax filing services. The FTC alleges the company used ubiquitous advertisements touting their supposedly “free” products misleading consumers into believing that they can file their taxes for free with TurboTax. Most tax filers can’t use the company’s “free” service because it is not available to millions of taxpayers, such as those who get a 1099 form for work in the gig economy, or those who earn farm income.
In addition, to prevent ongoing harm to consumers rushing to file their taxes, the FTC also filed a federal district court complaint asking a court to order Intuit to halt its deceptive advertising immediately.
On September 14, 2022, at 10:00 a.m., at the Federal Trade Commission offices located at 600 Pennsylvania Avenue, NW, Room 532-H, 25 Washington, DC 20580 an Administrative Law Judge of the FTC will hold a hearing on the charges set forth in the Complaint.
The FTC is seeking:
1. A prohibition against misrepresenting that a good or service is “free.”
2. A prohibition against misrepresenting any material fact, in connection with the advertising, marketing, promoting, or offering for sale of any goods or services, including: (a) the cost of any of Respondent’s goods or services, including any TurboTax product or service; and (b) any other fact material to consumers concerning any good or service, such as: the total costs; any refund policy; any material restrictions, limitations, or conditions; or any material aspect of its performance, efficacy, nature, or central characteristics.
3. A requirement that Respondent notify customers of the relief ordered by the Commission.
4. A requirement to file periodic compliance reports with the Commission.
5. A requirement to create and keep certain records including: (a) accounting records showing the revenues from all goods or services sold, the costs incurred in generating those revenues, and resulting net profit or loss; (b) personnel records showing, for each person providing services in relation to any aspect of the relief ordered by the Commission; (c) copies or records of all consumer complaints and refund requests; and (d) a copy of each unique advertisement or other marketing material making a representation subject to the relief ordered by the Commission.
6. Any other relief appropriate to correct or remedy Respondent’s deceptive advertising
For a copy of the redacted public release of the complaint visit the FTC’s website, https://www.ftc.gov/system/files/ftc_gov/pdf/D09408IntuitP3Complaint.pdf/
Date of Action: 3/29/2022