Consumers nationwide will begin receiving checks from a May 2022 multistate settlement between 51 attorneys general and Intuit, owner of TurboTax. The coalition of AGs settled with Intuit for $141 million to resolve allegations that TurboTax deceptively marketed its products.
The AGs accused Intuit of misleading customers by describing TurboTax products as “free.” Seventy percent of taxpayers are eligible for the Internal Revenue Service Free File Program operated by Intuit. However, the AGs argued that only 3% of tax filers used the system because of tactics Intuit employed to steer taxpayers away from the free program. Instead, Intuit pushed customers to use its paid commercial products.
Intuit customers who used TurboTax in 2016, 2017, and 2018 and qualified for the IRS Free File Program are eligible for a refund under the settlement, with most consumers expected to receive approximately $30.
Why It Matters
A settlement of this kind involving all 50 states and the District of Columbia is rare. This considerable figure signifies the AGs’ deep concern with how companies advertise their products and services, especially when companies describe products as “free.
