The Federal Trade Commission (FTC) sued the firm Intuit on the grounds that its TurboTax tax return service spreads misleading advertising to consumers so that they think the service is free.
According to the federal agency, the word “free” is continually spread in advertisements, a situation that misleads taxpayers, since makes them believe they can file their taxes for free with TurboTax.
“Most taxpayers can’t use the company’s free service because it’s not available to millions, like those who get a 1099 to work in the informal economy or those who earn farm income. ”, the FTC said in a statement.
The federal government body added that in 2020, “approximately two-thirds of taxpayers were unable to use the free TurboTax product.”
Furthermore, the FTC noted that the lawsuit asserts that the service unfairly taxes temporary workersself-employed to declare their taxes.
The federal government body prior to this lawsuit filed a complaint against the company through the United States District Court for the Northern District of California.
The FTC indicated that this complaint will continue as a lawsuit that could affect millions of taxpayers. He specifically cited ads for the service that focus on how it’s supposedly free as intentionally misleading.
The purpose of the lawsuit is to obtain an injunction to prevent TurboTax’s parent brand, Intuit, from promoting deceptive practices in its niche marketing and advertising.
For its part, Intuit said in a statement that it will challenge the FTC’s action, arguing that what was said is not credible.
“Our free advertising campaigns have led to more Americans filing their taxes for free than ever and have been instrumental in raising awareness of free tax preparation,” said Intuit Executive Vice President and General Counsel. Kerry MacLean.
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