FTC Lawsuit against Turbo Tax free software: Difference between revisions
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The [[Federal Trade Commission]] took action against '''[[Intuit|Intuit Inc.]]''', the maker of the popular TurboTax tax filing software,<ref>{{Cite web |date=2022-03-29 |title=FTC Official Press release |url=https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-sues-intuit-its-deceptive-turbotax-free-filing-campaign |url-status=live |website=FTC.gov}}</ref> 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. | The [[Federal Trade Commission]] took action against '''[[Intuit|Intuit Inc.]]''', the maker of the popular TurboTax tax filing software,<ref>{{Cite web |date=2022-03-29 |title=FTC Official Press release |url=https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-sues-intuit-its-deceptive-turbotax-free-filing-campaign |url-status=live |archive-url=https://ghostarchive.org/archive/HGwNy |archive-date=2026-06-22 |website=FTC.gov}}</ref> 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== | ==Background== | ||
Since 2015 Intuit Inc. (makers of the popular TurboTax software) has ran commercials stating customers could file for free. Most of the ads people have seen are as the FTC complaint put "uses the word almost exclusively". People v. Intuit (LA City) filed May 6, 2019 sought to remedy the commercials as many people found that they would be charged to file with the popular tax software and later found two-thirds of all people would not be able to even use the free version of the software. A settlement of 28 million was offered but declined as inadequate in late 2021. At the same time as the LA lawsuit 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 official lawsuit. | Since 2015 Intuit Inc. (makers of the popular TurboTax software) has ran commercials stating customers could file for free. Most of the ads people have seen are as the FTC complaint put "uses the word almost exclusively". People v. Intuit (LA City) filed May 6, 2019 sought to remedy the commercials as many people found that they would be charged to file with the popular tax software and later found two-thirds of all people would not be able to even use the free version of the software. A settlement of 28 million was offered but declined as inadequate in late 2021. At the same time as the LA lawsuit 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 official lawsuit. | ||
Noted by the FTC, <ref>{{Cite web |title=FTC notes: they have reason to believe |url=https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-sues-intuit-its-deceptive-turbotax-free-filing-campaign |url-status=live}}</ref> 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. | Noted by the FTC, <ref>{{Cite web |date=2022-03-29 |title=FTC notes: they have reason to believe |url=https://www.ftc.gov/news-events/news/press-releases/2022/03/ftc-sues-intuit-its-deceptive-turbotax-free-filing-campaign |url-status=live |archive-url=https://ghostarchive.org/archive/HGwNy |archive-date=2026-06-22}}</ref> 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 <ref>{{Cite web |date=2022-03-30 |title=Admin complaint part 3 |url=https://www.ftc.gov/system/files/ftc_gov/pdf/D09408IntuitP3Complaint.pdf |url-status=live}}</ref> had 122 paragraphs of statements 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. | The Administrative complaint <ref>{{Cite web |date=2022-03-30 |title=Admin complaint part 3 |url=https://www.ftc.gov/system/files/ftc_gov/pdf/D09408IntuitP3Complaint.pdf |url-status=live}}</ref> had 122 paragraphs of statements 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. | ||