H&R Block; Analysis of Proposed Consent Order To Aid Public Comment

Comments are closed. The Federal Trade Commission (FTC) enforcement actions against Intuit (TurboTax) and H&R Block regarding deceptive "free" tax filing claims. The records indicate that both companies lured consumers with marketing for zero-dollar services that were actually unavailable to a large portion of the tax-filing public. In the case of Intuit, the Commission issued a cease-and-desist order after finding that the company's "simple returns" disclosures were unnoticeable and insufficient to correct misleading advertisements. For H&R Block, the complaint further identifies unfair data-wiping practices and burdensome customer service requirements designed to prevent users from moving to cheaper products. The resulting consent orders mandate more transparent disclosures regarding eligibility and prohibit the companies from misrepresenting the costs of their software. Additionally, the H&R Block settlement includes a $7 million redress fund to compensate consumers harmed by these practices.
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