The lawsuit is
The FTC said this is deceptive because the free option only applies to a small number of customers. Although the commercial has a disclaimer that the only free option is a simple return, the FTC states that the disclosure is not appropriate due to the small size of the words, the short amount of time they appear on screen, and the fact that: I thought not. The narration doesn't mention them. Additionally, he said the definition of “simple” returns has narrowed over the years. The complaint added that TurboTax can be used for free on all forms through his IRS's Free File program;
Intuit said the allegations lacked credibility and said it would contest the charges. Kelly MacLean, executive vice president and general counsel, said in a statement that the company's advertising campaign has been central to increasing the number of people filing for free and increasing awareness of free tax preparation options.
However, Chief Administrative Law Judge D. Michael Chappell disagreed with the defense, pointing out that only a small number of applicants have access to free filing options, and that Intuit's marketing is indeed deceptive. I concluded that there is.
“Evidence proves that defendants advertised to consumers that they could use TurboTax to file their taxes online for free, but in reality, taxpayers' 2, the advertised claims were false. Furthermore, the false representation that the product was free was a “material fact that influenced consumer choices about the product. Therefore, the evidence shows that the defendants have no right to comply with the FTC Act. “We demonstrate that they engaged in deceptive advertising in violation of Article 5,” the judge's opinion said.
Following a proposal from the FTC, the judge ruled that Intuit does not allow TurboTax to sell products or services unless the product or service is actually free to all consumers or the product or service is actually free. order to refrain from advertising, marketing, promoting, or selling any material fact that the service is free. At the very least, clearly and conspicuously lay out who is eligible for the free application, leaving no possibility of misunderstanding.
Intuit argued this was unnecessary because it stopped making such claims in its marketing materials. But the judge said that while the details may differ, the companies are still making substantially similar claims. Furthermore, the judge felt that there was a risk that the offense would recur if the order was not made.
Intuit also argued that additional disclosures would not help consumers and could even confuse them with information overload. However, the judge said this was only a hypothetical harm that could be avoided by not making claims that would require such disclosure. Intuit also argued that the order violates the First Amendment because the disclaimer constitutes forced speech, and that the disclosure would be unduly burdensome given that competitors are not required to make similar disclosures. I tried to claim that. But the judge said there was sufficient precedent for requiring such disclosure in commercial speech, and that he did not feel the requirement was particularly onerous.
Intuit also said it is not clear exactly how the order should be implemented. But the judge replied that it wasn't that complicated. Disclosures must be sufficiently clear to be understood by “those to whom they are directed” in order to “avoid raising serious questions as to their meaning and application” in litigation. future enforcement needs; The judge also pointed out that there is ample guidance on how to enact orders like this based on past precedent, and suggested that Intuit take a look at that.
Finally, Intuit argued that it would be inappropriate for the order to apply to the entire company when the lawsuit specifically concerns TurboTax and other products. But the judge felt such a broad order was necessary, given that the company has long maintained that TurboTax is free, and that the deceptive advertising practices have been linked to other companies such as QuickBooks and Credit Karma. He argued that it could be easily transferred to other fields.
Intuit said in a statement that the FTC's decision was handed down by an FTC-employed judge in a lawsuit brought by the FTC itself, making it a baseless ruling in a flawed system. . In such cases, the FTC often rules in its favor, he said. The company indicated that the case is not over yet.
“Intuit plans to appeal this seemingly predetermined decision in favor of the FTC and, when the matter ultimately returns to a neutral body, We are confident that Intuit will prevail, as we did in this matter. Intuit has always been clear and fair, and transparent with our customers, and we will continue to provide free tax preparation. We are committed to doing so,” the statement said.
