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COMMENTARY OF THE DAY
By
Robert Namer
Voice Of America
©2024 All rights reserved
May 11, 2024

     A judge with the Federal Trade Commission ruled that Intuit, the company that produces TurboTax software, mislead customers by characterizing their product as "free" in advertisements.  They got caught with their pants down.

     Judge D. Michael Chappell said that Intuit Inc. "engaged in deceptive advertising in violation of Section 5 of the FTC Act."  The ruling comes from an FTC  administrative complaint filed in March 2022.  "In the complaint, FTC staff alleged that the company's ubiquitous advertisements touting their supposedly 'free' products -- some of which have consisted almost entirely of the word 'free' spoken repeatedly -- mislead consumers into believing that they can file their taxes for free with TurboTax," the FTC said in a press release.

    Chappell said TurboTax's so-called "free" services were ultimately not available to many potential customers and that Intuit was "prohibited from engaging in deceptive practices in the future." "In fact, most tax filers can't use the company's 'free' service because it is not available to millions of taxpayers, such as those who get a 1099 form for work in the gig economy, or those who earn farm income. In 2020, for example, approximately two-thirds of tax filers could not use TurboTax's free product," the FTC said.     Copies of the order will be given to relevant parties for the next 20 years and the company will be required to keep strict records to ensure compliance, according to the FTC.

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