FTC Alleges TurboTax Is Deceiving Consumers About Its Services Being Free


On March 28, 2022, the Federal Trade Commission (“FTC”) filed a complaint requesting a temporary restraining order and preliminary injunction against TurboTax, the popular online tax preparation company. Specifically, the FTC alleges that TurboTax markets its services as being free, when in actuality, it is only free for some consumers. The FTC states that the company goes so far as to air commercials “in which almost every word spoken is the word ‘free.’”

The FTC is moving swiftly to halt these practices, given that demand for the company’s services will likely increase significantly due to the upcoming tax-filing deadline. The case represents the ongoing battle against companies offering purportedly free tax preparation services, and will put consumers on alert during what will inevitably be another busy tax season. 

The case is Federal Trade Commission v. Intuit Inc., No. 5:22-cv-1973, filed in the U.S. District Court for the Northern District of California. A copy of the FTC’s complaint can be found here

 

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Ruhandy Glezakos is an associate attorney in the firm's Los Angeles office and a member of the Consumer Protection Litigation Practice Group.

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