The Federal Trade Commission has 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 by the agency, it 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.
Additionally, Intuit is prohibited from marketing its products or services as free unless there’s actually no cost for everyoneand is required 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.
Intuit is appealing the order, saying it is flawed.
The opinion and final order upheld a decision from FTC chief administrative law judge D. Michael Chappell, who ruled that Intuit violated federal law by engaging in deceptive advertising this past September.
In a 2022 settlement signed by the attorneys general of all 50 states, Intuit agreed to suspend TurboTax’s “free, free, free” ad campaign and pay $141 million in restitution to nearly 4.4 million taxpayers nationwide.