Intuit Class Action Claims TurboTax Violates N.J. Consumer Laws

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Two users of TurboTax software are suing its maker Intuit Inc. arguing the company attempts to avoid more liability than New Jersey law allows.

Plaintiffs Fay and Aaron Rubin take issue with certain provisions in the TurboTax terms and conditions that they say attempt to absolve Intuit of all possible liability. They claim that with these provisions, Intuit “blatantly obscures the effects of their disclaimers on New Jersey residents, and shirks away from duties it owes to consumers.”

The TurboTax lawsuit quotes a section from the general terms and conditions posted on Intuit’s website, a section that if honored by a court would provide Intuit with sweeping protection from liability. The language tells the consumer that use of the TurboTax website is done entirely at the consumer’s own risk. The language attempts to waive applications of any and all warranties, both expressed and implied, according to the plaintiffs.

The Rubins say these terms in the TurboTax terms and conditions violate New Jersey statutes that govern what terms may or may not be included in consumer contracts. Their claims generally refer back to the New Jersey Truth in Consumer Contract, Warranty and Notice Act (TCCWNA) which they say was written to prevent businesses from dodging too much of their legal responsibilities to consumers.

By attempting to absolve Intuit from all possible liability, the TurboTax terms and conditions try to avoid legal duties to consumers that are well-established in New Jersey statutes and court opinions, the plaintiffs say. They believe the language would improperly strip consumers of their rights under the New Jersey Products Liability Act, the Punitive Damages Act, the state Uniform Commercial Code, and other statutes.

Each would-be derogation of consumer’s rights under New Jersey law is a violation of the TCCWNA, the plaintiffs say. They add that contracts, and other provisions that violate the TCCWNA, subject the offender to a minimum penalty of $100 and give the consumer a basis for terminating the offending contract.

The TurboTax terms and conditions also says that some of its limitations of liability may be forbidden by law in some states. Plaintiffs argue that this mention is not sufficient. They say that for New Jersey customers, TurboTax should specify which provisions are or aren’t void, unenforceable or inapplicable in New Jersey.

The Rubins want to be lead plaintiffs representing a Class consisting of everyone in New Jersey who has purchased TurboTax services within the past six years.

They are seeking a damage award for themselves and each Class Member of not less than $100 for each violation of the TCCWNA, as well as court costs and attorneys’ fees. They also seek a court order terminating the disputed language in the TurboTax user agreement and a requirement that TurboTax remove those terms from its website.

The plaintiffs are represented by Fred M. Zemel of The Zemel Law Firm PC.

The TurboTax Consumer Rights Class Action Lawsuit is Rubin v. Intuit Inc., Case No. 3:16-CV-02029, in the U.S. District Court for the District of New Jersey.

UPDATE: On June 6, 2016, Intuit asked a federal court to dismiss this TurboTax class action lawsuit and to send it to arbitration.