Federal regulators have ruled that Intuit, the maker of the tax-filing software TurboTax, must stop marketing its services as free, unless they are free to everyone or exceptions are clearly disclosed.
TurboTax had for years claimed customers could file their taxes online for free.
The Federal Trade Commission said in an opinion and final order issued on Monday that its advertising was deceptive because two-thirds of taxpayers were not eligible to file with the free product.
The commission also found that the company’s attempts to disclose that not everybody qualified for free services were “ineffective and often inconspicuous.”Examples of ineligible taxpayers include those claiming mortgage and property deductions, charitable donations over $300, unemployment income, investment income, rental property income and certain education expenses.
Gig workers who reported income as independent contractors, including many delivery drivers, were also ineligible.
Persons:
TurboTax
Organizations:
Intuit, Federal Trade Commission