H&R Block accused of deceptive marketing over free tax advertising By: Reuters

Written by David Shepherdson and Jasper Ward

WASHINGTON (Reuters) – The U.S. Federal Trade Commission on Friday accused H&R Block (NYSE:) of misrepresenting its online tax preparation software as being free, when that was not true for many consumers. announced that a complaint had been filed.

The FTC also alleged that the company removed consumers’ tax data and required them to contact customer service when downgrading to a more affordable product.

The FTC says that while H&R Block’s television ads and promotions indicate that consumers can file their tax returns for free, they include language (sometimes in the fine print) stating that the free benefit applies only to simple returns. He said he was.

The ad did not explain what a simple return was, the company had changed its definition of the term “multiple times in recent years,” and H&R Block was aware of consumer dissatisfaction and confusion with the ad, the commission said. Stated.

“H&R Block designed its online products to present consumers with an obstacle course of tedious challenges and cause them to overpay for their products,” said Samuel Levin, director of the FTC’s Bureau of Consumer Protection. .

H&R Block’s website advertises a free alternative that costs between $35 and $85 for federal returns. The FTC is not seeking civil penalties.

H&R Block said in a statement that it believes “we offer our customers tremendous value, unparalleled tax expertise, and fair and transparent pricing.” The company added that it has offered a free “do-it-yourself filing option for more than 20 years to help millions of Americans file their taxes.”

Last month, the FTC banned TurboTax software maker intuition (NASDAQ:) found that the company engaged in deceptive practices by allowing consumers to provide free advertising and marketing services when they were not actually eligible.

Intuit said it would appeal. In 2022, he paid $141 million in damages for similar claims.