New York City
Monday, July 22, 2024
“THE CEO PUBLICATION owns both and websites"


Administrative Law Justice Issues Final Statement in FTC's Case Against Intuit Inc

September 11, 2023: On Friday, Intuit, the parent company of TurboTax, is still facing blowback over claims it tricked people into using its “free” tax filing service that wasn’t free.

In a ruling on Friday, the Federal Trade Commission’s chief administrative law judge ruled that Intuit “deceived consumers” and “engaged in deceptive advertising.”

Intuit will appeal the ruling, said Rick Heineman, a company spokesperson stated.

“It’s no surprise that a case the FTC brought before itself, argued with FTC-employed lawyers, all before an FTC-employed judge got a ruling in favor of the FTC,” Heineman said.

The judge likewise issued a cease-and-desist order out of “cognizant danger of a recurring violation” against Intuit, which restricts the company from advertising goods and services as free unless it’s accessible to all customers, a majority of U.S. taxpayers, or clearly stating the limits. According to the FTC, the order must be shared with relevant parties for 20 years.

Shares of Intuit decreased 0.3% after hitting a 52-week high earlier on Friday.

In a 2022 administrative complaint, the FTC said that millions of taxpayers, including those who accept a specific 1099 form from the Internal Earnings Service or earn farm income, did not qualify for TurboTax’s “free” services. The protest said about two-thirds of filers could not use the free service in 2020.

Intuit agreed with all 50 states and the District of Columbia in 2022 to pay $141 million to users who paid for TurboTax when the filing software should have been free, a deal affecting about 4.4 million consumers.

Section 5 of the FTC Act bans companies from engaging in misleading acts or practices that can cause substantial injury to consumers.

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
Receive the latest news

Request for online magazine

Join Us

Advertise with us

meteroid vecrtor
Receive the latest news

Contact Us