TurboTax maker Intuit barred from advertising 'free' tax services without disclosing who's eligible
U.S. regulators have barred TurboTax maker Intuit Inc. from advertising its services as “free” unless they are free for all customers, or if eligibility is clearly disclosed
NEW YORK — U.S. regulators have barred TurboTax maker Intuit Inc. from advertising its services as “free” unless they are free for all customers, or if eligibility is clearly disclosed.
In an opinion and final order issued Monday, the Federal Trade Commission ruled that Intuit engaged in deceptive practices by running ads claiming consumers could file their taxes for free using TurboTax though many people did not qualify for such free offerings.
“The character of the past violations is egregious," reads the FTC commissioners' opinion, which details Intuit ads across TV, radio and online over the years. «Intuit blanketed the country with deceptive ads to taxpayers across multiple media channels.”
In addition to prohibiting Intuit from marketing its products or services as free unless there's actually no cost for everyone, the FTC's order requires Intuit to disclose what percentage of consumers are eligible and note if a majority of taxpayers do not qualify.
Terms and conditions to obtain a free good or service must also be clearly disclosed or linked to if ad space is limited, the FTC said in its order. The order also bars Intuit from “misrepresenting any material facts about its products or services,” including refund policies and price points.
In a statement sent to The Associated Press Tuesday, Intuit said it had appealed what it called the FTC's “deeply flawed decision.”
“This decision is the result of a biased and broken system where the Commission serves as accuser, judge, jury, and then appellate judge all in the same case,» Intuit stated. The
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