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New York CNN — The Federal Trade Commission ruled in a final order and opinion Monday that TurboTax, the popular tax filing software, engaged in deceptive advertising and banned the company from advertising its services for free unless it is free for all customers.
By running ads for “free” tax services that many customers were not qualified for, the tax filing software violated the FTC Act and deceived consumers, the agency said.
The FTC had first sued Intuit, TurboTax’s owner, for its deceptive advertising in 2022. The FTC staff alleged most tax filers couldn’t use the company’s “free” services — “such as those who get a 1099 form for work in the gig economy, or those who earn farm income.” TurboTax advertising their products as free misled those customers, according to the FTC.
The FTC Administrative Law Judge D. Michael Chappell announced the initial decision in September, which the commission upheld Monday. Intuit had appealed to the FTC as part of the process.
In a statement Monday, Intuit said it has appealed “this deeply flawed decision” to federal circuit court outside of the FTC.
By running ads for “free” tax services that many customers were not qualified for, the tax filing software violated the FTC Act and deceived consumers, the agency said.
The FTC had first sued Intuit, TurboTax’s owner, for its deceptive advertising in 2022. The FTC staff alleged most tax filers couldn’t use the company’s “free” services — “such as those who get a 1099 form for work in the gig economy, or those who earn farm income.” TurboTax advertising their products as free misled those customers, according to the FTC.
The FTC Administrative Law Judge D. Michael Chappell announced the initial decision in September, which the commission upheld Monday. Intuit had appealed to the FTC as part of the process.
In a statement Monday, Intuit said it has appealed “this deeply flawed decision” to federal circuit court outside of the FTC.
