Intuit TurboTax settlement

2022 - 5 - 4

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TurboTax maker will pay $141M in settlement over misleading ads ... (NPR)

Under a settlement signed by the attorneys general of all 50 states, Intuit Inc. will suspend TurboTax's "free, free, free" ad campaign and pay restitution ...

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Image courtesy of "The Washington Post"

Intuit agrees to $141 million settlement over 'deceptive' TurboTax ads (The Washington Post)

The maker of the tax-filing software steered low-income consumers away from free programs, according to a complaint by nine state attorneys general.

In a blog post, the company said it “already adheres to most of these advertising practices and expects minimal impact to its business from implementing the remaining changes going forward.” “For years, Intuit misled the most vulnerable among us to make a profit. Consumers are set to automatically receive mailed checks of $30 for each year they paid for filing services.

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Image courtesy of "New York State Attorney General"

Attorney General James Secures $141 Million for Millions of ... (New York State Attorney General)

AG James Leads All 50 States in Agreement with TurboTax Owner Intuit for. Deceiving Low-Income Americans into Paying for Free Tax Services.

The OAG’s multistate investigation found that Intuit engaged in several deceptive and unfair trade practices that limited consumers’ participation in the IRS Free File Program. The company used confusingly similar names for both its IRS Free File product and its commercial “freemium” product. Moreover, TurboTax’s website included a “Products and Pricing” page that stated it would “recommend the right tax solution,” but never displayed or recommended the IRS Free File program, even when consumers were ineligible for the “freemium” product. The states wish to thank the Federal Trade Commission for its assistance in the investigation. In contrast, the IRS Free File products were free for 70 percent of taxpayers. In exchange for participating in the program, the IRS agreed not to compete with Intuit and other tax-prep companies by providing its own electronic tax preparation and filing services to American taxpayers. Today, every state in the nation is holding Intuit accountable for scamming millions of taxpayers, and we’re putting millions of dollars back into the pockets of impacted Americans. This agreement should serve as a reminder to companies large and small that engaging in these deceptive marketing ploys is illegal.

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Image courtesy of "The New York Times"

Intuit Will Refund $141 Million to Low-Income TurboTax Users (The New York Times)

In a settlement, the software company admitted no wrongdoing but agreed to repay fees it had charged millions of Americans for returns that the authorities ...

But the company deliberately employed “several deceptive and unfair trade practices” to drive customers away from participating in the federal program, Ms. James said. Intuit said in a statement that the company did not admit any wrongdoing and agreed to pay the settlement fee “to put this matter behind it.” Customers will be notified automatically and sent checks amounting to roughly $30 for each year that they were compelled to pay for TurboTax. Millions of customers signed up, only to pay hidden fees later in the process. Refunds will be sent automatically to affected taxpayers. The company “cheated millions of low-income Americans out of free tax filing services they were entitled to,” Ms. James said, adding that the settlement, signed by the attorneys general of all 50 states and the District of Columbia, was a clear reminder to companies that “deceptive marketing ploys” are illegal.

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Image courtesy of "USA TODAY"

TurboTax settlement: Firm to pay $141 million for false promises of ... (USA TODAY)

After Intuit, the company behind TurboTax, reached a settlement with AGs in all 50 states, more than 4.4 million US taxpayers can get restitution.

Until last year, Intuit offered two free versions of TurboTax. One was through its participation in the IRS Free File Program, geared toward taxpayers earning roughly $34,000 and members of the military. They will automatically receive notices and checks by mail. "For years, Intuit misled the most vulnerable among us to make a profit.

AG Paxton Secures $14 Million in Restitution for Consumers in ... (texasattorneygeneral.gov)

Attorney General Paxton announced a significant settlement against Inuit Inc., who markets the popular product “Turbo Tax.” Texas will receive more than $14 ...

From 2017 through 2021, the cases brought by Attorney General Paxton’s Consumer Protection Division have resulted in over $60 million in ordered restitution. In those settlements, Attorney General Paxton successfully secured over $1.819 billion from the makers and distributors of opioids as well as industry-changing injunctive relief. This settlement comes on the heels of opioid settlements previously announced by Attorney General Ken Paxton in February 2022, that also widely benefit Texas consumers.

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Image courtesy of "CNET"

Intuit to Pay $141M to Settle Claim It Tricked TurboTax Customers ... (CNET)

TurboTax must also cease advertising that, officials say, "lures" customers with false promises of free tax prep services.

Investigators said Intuit also engaged in deceptive trade practices, including intentionally blocking its IRS Free File landing page from search engine results during the 2019 tax filing season. The commercial, which aired during the Super Bowl, featured an announcer declaring "TurboTax Free is free. "For years, Intuit misled the most vulnerable among us to make a profit," James said.

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Image courtesy of "Journal Record"

Intuit to pay $141M settlement over 'free' TurboTax ads (Journal Record)

The company behind the TurboTax tax-filing program will pay $141 million to customers across the United States who were deceived by misleading promises of ...

Until last year, Intuit offered two free versions of TurboTax. One was through its participation in the Internal Revenue Service’s Free File Program, geared toward taxpayers earning roughly $34,000 and members of the military. “This agreement should serve as a reminder to companies large and small that engaging in these deceptive marketing ploys is illegal.” “For years, Intuit misled the most vulnerable among us to make a profit.

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Attorney General Jennings Announces $141 Million TurboTax ... (news.delaware.gov)

All 50 states reach agreement with Intuit for deceiving low-income Americans into paying for free tax services. Attorney General Kathy Jennings today ...

Moreover, TurboTax’s website included a “Products and Pricing” page that stated it would “recommend the right tax solution,” but never displayed or recommended the IRS Free File program, even when consumers were ineligible for the “freemium” product. In contrast, the IRS Free File product was free for 70 percent of taxpayers. The multistate investigation found that Intuit engaged in several deceptive and unfair trade practices that limited consumers’ participation in the IRS Free File Program. The company used confusingly similar names for both its IRS Free File product and its commercial “freemium” product. Under the agreement, Intuit will provide restitution to millions of consumers who started using TurboTax’s Free Edition for tax years 2016 through 2018 and were told that they had to pay to file even though they were eligible to file for free using the version of TurboTax offered as part of the IRS Free File program. In addition, Intuit must suspend TurboTax’s “free, free, free” ad campaign that lured customers with promises of free tax preparation services, only to deceive them into paying for services. Moreover, TurboTax’s website included a “Products and Pricing” page that stated it would “recommend the right tax solution,” but never displayed or recommended the IRS Free File program, even when consumers were ineligible for the “freemium” product. In contrast, the IRS Free File product was free for 70 percent of taxpayers. My office will continue to protect consumers statewide and be on the lookout for businesses who seek to take advantage of them.” The multistate investigation found that Intuit engaged in several deceptive and unfair trade practices that limited consumers’ participation in the IRS Free File Program. The company used confusingly similar names for both its IRS Free File product and its commercial “freemium” product. Under the agreement, Intuit will provide restitution to millions of consumers who started using TurboTax’s Free Edition for tax years 2016 through 2018 and were told that they had to pay to file even though they were eligible to file for free using the version of TurboTax offered as part of the IRS Free File program. In addition, Intuit must suspend TurboTax’s “free, free, free” ad campaign that lured customers with promises of free tax preparation services, only to deceive them into paying for services. My office will continue to protect consumers statewide and be on the lookout for businesses who seek to take advantage of them.”

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Intuit to Pay $141M Settlement Over TurboTax Ads. Here's How ... (NBC Chicago)

The company behind the TurboTax tax-filing program will pay $141 million to customers across the United States, including in Illinois, who were deceived by.

Until last year, Intuit offered two free versions of TurboTax. One was through its participation in the Internal Revenue Service's Free File Program, geared toward taxpayers earning roughly $34,000 and members of the military. They will automatically receive notices and checks by mail. "For years, Intuit misled the most vulnerable among us to make a profit.

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TurboTax $141 million settlement: Who is eligible for payments? (al.com)

The IRS Free file program is geared towards taxpayers earning roughly $34,000 and members of the military. Intuit withdrew from the program in 2021.

Eligible customers will automatically receive notices and a check by mail. The settlement comes after a 2019 ProPublica report that found the California-based company used deceptive tactics to steer low-income consumers toward its commercial products and away from federally supported free tax services. More than 4.4 million taxpayers are eligible under the terms of the settlement by signed attorneys general of all 50 states,

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Image courtesy of "CNN"

TurboTax to refund customers $141 million after allegedly steering ... (CNN)

Intuit, the owner of tax filing software TurboTax, has agreed to pay $141 million in a settlement with all 50 states for allegedly steering millions of ...

James said the tactic targeted low-income consumers in particular. "Intuit cheated millions of low-income Americans out of free tax filing services they were entitled to," James wrote in a press release. The settlement, announced Wednesday by New York Attorney General Letitia James, said about 4.4 million customers were "unfairly charged."

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Intuit TurboTax Settlement—How 'Cheated' Customers Will Be ... (Newsweek)

Intuit, the company behind the TurboTax tax-filing program, has agreed to pay $141 million to customers across the United States who were charged for using ...

Nevertheless, we are fully prepared to litigate with the FTC to prove the merits of our case," McLean added. "Intuit already adheres to most of these advertising practices and expects minimal impact to its business from implementing the remaining changes going forward." However, the lawsuit claimed that the service unfairly taxed gig workers and independent contractors to file their taxes.

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TurboTax might owe you money: What to know if you paid to use ... (Fast Company)

Intuit has agreed to pay $141 million to four million Americans who paid for its tax preparation services.

But the company got caught, and this settlement now forces it to pay for its misdeeds. In fact, affected customers were eligible to file their taxes for free using Intuit’s services. As ProPublica reports, Intuit lured customers by advertising their tax prep services for free before getting them to pay for said services.

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Image courtesy of "CNET"

How to Claim Your Part of the $141 Million TurboTax Settlement (CNET)

TurboTax's parent company, Intuit, was accused of baiting customers with free tax prep, then pushing them into paid services.

These people were told they had to pay to file, even though they qualified for the IRS Free File program, a partnership between the agency and major tax prep software companies. According to James' office, people who qualify will automatically receive a direct payment of approximately $30 for each year that they were deceived into paying for filing services. "This agreement should serve as a reminder to companies large and small that engaging in these deceptive marketing ploys is illegal."

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