"A Federal Trade Commission lawsuit is leading to changes for consumers who use H&R Block’s do-it-yourself online tax filing products. A proposed FTC settlement would stop H&R Block from unfairly requiring consumers seeking to downgrade to a cheaper H&R Block product to contact customer service, from unfairly deleting users' previously entered data and from making deceptive claims about “free” tax filing.

The tax-filing company has agreed to a proposed settlement that will require the company to make a number of changes for the 2025 tax filing season in addition to longer-term changes. The settlement would also require the company to pay $7 million to the FTC to be used to redress consumers harmed by the company’s unlawful practices.

“American taxpayers who seek tax-filing help should be able to choose the services they need—and know the truth about how much they’ll pay,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The FTC’s action today will help lower the stress and expense of tax season for millions of taxpayers.”

The FTC filed an administrative lawsuit against H&R Block in February 2024, charging that the company deceptively advertised that its online tax filing products were “free” when many—if not most—consumers could not actually file for free."

https://www.ftc.gov/news-events/news/press-releases/2024/11/ftc-action-stops-hr-blocks-unfair-downgrading-practices-deceptive-promises-free-filing

#USA #FTC #TaxFilling #DeceptiveAdvertising #Taxes

FTC Action Stops H&R Block’s Unfair Downgrading Practices and Deceptive Promises of ‘Free’ Filing

A Federal Trade Commission lawsuit is leading to changes for consumers who use H&R Block’s do-it-yourself online tax filing products.

Federal Trade Commission

#USA #Taxes #IRS #TaxFilling #Marketing #Propaganda: "The centerpiece of this PR push has been an argument that Intuit unveiled on its website in May. Seeking to capitalize on recent research that found racial disparities in IRS audits, the company has argued that an IRS tax filing tool would only make things worse. It’s a conclusion rejected by authors of that research, but the idea has certainly made for some eye-catching headlines.

“IRS Free Tax Service Could Further Harm Blacks,” is how the Defender, a Black paper in Houston, put it in a June headline. The piece cited unnamed “industry experts” as raising the concern but quoted only one person by name: Intuit’s spokesperson Derrick Plummer. The story was produced by Trice Edney News Wire, a service that provides content to local Black papers across the country. Hazel Trice Edney, the service’s editor-in-chief, did not respond to requests for comment."

https://www.propublica.org/article/turbotax-intuit-black-taxpayers-irs-free-file-marketing

TurboTax Parent Company’s Latest Argument Against Free Tax Filing: It Will Harm Black Taxpayers

Articles published around the country repeat Intuit’s assertion — sometimes almost word for word — that the upcoming IRS pilot program would hurt Black Americans. A researcher whose work is cited by Intuit says the company is misstating her findings.

ProPublica