FTC Lawsuit against Turbo Tax free software

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The Federal Trade Commission took action against Intuit Inc., the maker of the popular TurboTax tax filing software, by issuing an administrative complaint against the company for deceiving consumers with bogus advertisements pitching “free” tax filing that millions of consumers could not use. In addition, to prevent ongoing harm to consumers rushing to file their taxes, the Commission also filed a federal district court complaint asking a court to order Intuit to halt its deceptive advertising immediately.

Background

Since 2015 Intuit inc. (makers of the popular turbo tax software) has ran commercials stating customers could file for free. Most of the ads people have seen are as the FTC complaint put " usse the word almost exclusivly ". People v. Intuit (LA City) filed May 6, 2019 saught to remidy the comercials as many people found that they would be charged to file with the popular tax software and later found 2/3 of all people would not be able to even use the free version of the software. A settelment of 28 million was offered but declined as inadiquite in late 2021. At the same time as the LA lawsiut began the FTC filed a C.I.D (Civil Investigation Demand).Class Action Prelim. Approval Denied Mar. 5, 2021 marks the end of the lawsuit for the time. Intuit's chair meeting concluded on march 24 2022 and by march 28 the ftc started the offical lawsiut.

Noted by the FTC , They have reason to believe that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.

The Administrative complaint had 122 paragraphs of statments brought by the FTC, Most of these paragraphs are evidence of the free wording used and the non disclosures of payments needed to use the software. Later in the documents Intuit had denied any wrong-doing.

Incident

Early 2022 Intuit had begun to pay the $141 million settlement brought by california state attorney general after alleged deceptively advertised its services. A few months later FTC issued a statement , " FTC is taking action to hault the deceptive advertising "free" by Intuit inc. the maker of the tax software TurboTax. The FTC asked the Courts to put an immediate stop on the advertising.

Intuit inc's response

Initail response by C-suit personel were of shock, they had just gotten out of a meeting when the ftc filing hit. Intuit later put a response in september 2023 " Intuit has been clear, fair, and transparent with its customers and is committed to free tax preparation. We are proud that over the last 10 years more than 124 million taxpayers have filed their taxes with Intuit completely free of charge – more than all other tax prep software companies combined ."

Lawsuit

Major Timeline of lawsuit.

March 29th 2022 - FTC press release on lawsuit

March 30th '22 - Protective order governing confidential material

April 5-7 '22 - apperance of council supporting complaint

August 19 '22 - FTC press release "lits stay on intuit proceding"

September 26 '22 - Intuits supplemental response to complaints of material facts as to which there is no genuine issue for trial. (Intuit says there is nothing to prove ftc has a trial)

Oct - Nov '22 - Motions to Quash or limit subpoenas

January '23 - FTC commissioner to vote to deny motion by agency staff seeking summary decision.

April 28 '23 - Order closing hearing record.

2023 - most of the year is extending brefs and apperances of people, later on disqualifying people after some time, no major movement in case. (hearing what people want to say about TurboTax)

January 9 '24 - FTC press release issuses opinion finding turbo tax engaged in deceptive practices.

January 22 '24 - Court Final order

FINAL ORDER - "Offer free to all consumers , OR disclose clearly and conspicuously in close proximity to "free".

Also noted in final order is a list of requirements on how to tell consumers they have to pay for parts of the software.

Consumer response

Summary and key issues of prevailing sentiment from the consumers and commentators that can be documented via articles, emails to support, reviews and forum posts.

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