MOUNTAIN VIEW (dpa-AFX) - The Federal Trade Commission has ruled that Intuit
Inc., the maker of the popular TurboTax tax filing software, cannot call its
services 'free' anymore as it is deceiving its customers.

The FTC issued an Opinion and Final Order that Intuit engaged in deceptive
advertising in violation of the FTC Act and deceived consumers when it ran ads
for 'free' tax products and services for which many consumers were ineligible.

The Commission upheld the Chief Administrative Law Judge Michael Chappell's
opinion that Intuit has engaged in deceptive advertising in violation of Section
5 of the FTC Act.

Chappell had announced the initial decision in September, which the commission
upheld. Intuit had appealed to the FTC as part of the process.

The Commission's Final Order prohibits Intuit from advertising or marketing that
any good or service is free unless it is free for all consumers or it discloses
clearly and conspicuously and in close proximity to the 'free' claim the
percentage of taxpayers or consumers that qualify for the free product or
service.

The order also requires that Intuit disclose clearly and conspicuously all the
terms, conditions, and obligations that are required in order to obtain the
'free' good or service.

The order also prohibits Intuit from misrepresenting any material facts about
its products or services such as the price, refund policies or consumers'
ability to claim a tax credit or deduction or to file their taxes online
accurately without using TurboTax's paid service.

The FTC had first sued Intuit for its deceptive advertising in 2022.

In a statement responding to the decision, Intuit said, 'Absolutely no one
should be surprised that FTC Commissioners - employees of the FTC - ruled in
favor of the FTC as they have done in every appeal for the last two decades.'

'This decision is the result of a biased and broken system where the Commission
serves as accuser, judge, jury, and then appellate judge all in the same case,'
the company added. 'Intuit has appealed this deeply flawed decision, and we
believe that when the matter ultimately returns to a neutral body Intuit will
prevail.'



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