H&R Block FTC complaint overview:
- Who: The Federal Trade Commission (FTC) sent an administrative complaint to H&R Block.
- Why: The FTC says H&R Block deceptively markets its products as free when many customers are not eligible and it creates unnecessary obstacles for customers to downgrade to less costly services.
- Where: The complaint came from the FTC’s Washington, D.C., office.
The Federal Trade Commission (FTC) sent an administrative complaint to H&R Block over the company labeling its products as free when many consumers are not eligible and creating unnecessary obstacles for those looking to downgrade to less costly services.
H&R Block leads customers into higher-cost products than necessary and then makes customers who are looking to downgrade to less costly products contact customer support via chat or phone; all of their information is deleted, and they have to restart the tax-preparation process.
“H&R Block designed its online products to present an obstacle course of tedious challenges to consumers, pressuring them into overpaying for its products,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a statement. “Today’s action demonstrates that companies using coercive techniques that harm consumers can expect to hear from the FTC.”
H&R Block does not explain necessary services at beginning of process, FTC says
The H&R Block website leads customers to purchase more expensive products than they intended when they went to the site for the promised free services, the complaint says.
The FTC says that happens because H&R Block does not properly explain what services are offered or needed for customers at the beginning of the process.
If a customer chooses a more expensive H&R Block product, the data moves seamlessly from one product to another. However, if the customer wants to downgrade, H&R Block allegedly puts obstacles in place to make it difficult for them to use free or less costly services.
H&R Block recently asked a federal court in California to dismiss claims it conspired to share private user data with Meta and Google, saying instead it had a normal business relationship with Google Analytics to measure user experience and used an appropriate disclaimer.
Have you used H&R Block for taxes, believing it was free, then been pushed into paying the company? Let us know in the comments.
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22 thoughts onH&R Block markets products as free then pushes customers to pay, FTC claims
I have used H&R Block for many years and am always surprised by the amount they charge me to simply do my taxes.
I have used H & R Block.
I’ve been using H &R Block for years . Abd I always have a problem if I want the free version this year wanted the $39 one and at the end they charged me over $70 tried to go back back and it wouldn’t let me.so I ended up paying
Definitely add me to this lawsuit because I’ve been filing taxes with H&R Block since about 2010 and I’m asking that advisor like why am I always paying so much at the end what do why do I have to buy that or what if I don’t want that service and they push you to get it and then they make you pay $35 for a processing fee And if you don’t have your banking information, they want you to pay to get the H&R Block card that’s not right
Same I start online w the free filing, and then somehow need to have a rep go over before it will even let me see my return. Once they finish they tell youvthe cost I’m always floored last year $ 1441.00 in “Block fees” no joke . I cant find where to join the settlement? I haven’t been notified yet.
I would like to be added to the class action. They do my taxes every year!
If your return amount is 2000 they’ll take at least 700 or 600 of that to wear your left with an amount of 13 to 1400 then they want you to pay for things that you don’t even want to pay for and they’ve been selling my taxes for the last past six years or or maybe longer than that to where I’m paying them for $500 every time or maybe $600 to file my taxes because I think that they doing it right in there and there they have a very professional service but I knew that this year when I found my taxes I’m like this is ridiculous. Why am I paying you $300 to file my taxes and then you charge me all of these fees at the end that I do not want to pay and you’re forcing me to pay this in order to move on to get my taxes submitted.
I used them last 2 yrs. Both years selected free filing, both years ended up paying $79.99 at the end of filing. This yr was worse, paid even w selecting free file, but after the deducted money for filing, I was notified I needed to paper file my mo tax return eventhough I was charged by hr block for filing.
Please add me!
Every single time I do the free file. They always push for a payment
Add me
Yes this has happened to me. Their practices are deceptive. Also they claim to do your state taxes for free but charge you for it anyway. They have a way of getting you one way or another!
Add me
I thought it was gonna be free. And had to pay 380dollars and that was discounted
Please me add
Used h&r block since 1995