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TurboTax Intuit Free Class Action Settlement Overview:
- Who: TurboTax Owner Intuit, Inc. has agreed to pay a $141 million settlement to consumers nationwide.
- Why: The settlement would end claims the company deceived millions of low-income Americans into paying for tax services that should have been free.
- Where: The settlement will benefit TurboTax consumers nationwide.
The company behind TurboTax has agreed to pay $141 million to consumers to settle claims it tricked people into paying for a commercial tax filing service when they could have used it for free.
In a press release issued May 4, New York Attorney General Letitia James said her office had reached a record multistate agreement with the owner of TurboTax, Intuit Inc.
The settlement would end claims the company deceived low-income Americans into paying for tax services that should have been free, James said.
Intuit will pay $141 million in restitution to millions of consumers across the nation who were unfairly charged. In addition, Intuit must suspend TurboTax’s “free, free, free” ad campaign that lured customers with promises of free tax preparation services only to allegedly deceive them into paying.
All 50 states and the District of Columbia have signed onto the agreement.
TurboTax Investigation Uncovered Deceptive, Unfair Trade Practices, NY Attorney General Says
The settlement comes after James’ multistate investigation allegedly found that Intuit engaged in several deceptive and unfair trade practices that limited consumers’ participation in the IRS Free File Program.
Intuit used confusingly similar names for both its IRS Free File product and commercial “freemium” product, she said. It also offered a “free” product that was not free for most with TurboTax but that people could have used for free through the IRS.
Earlier this year, the Federal Trade Commission (FTC) filed a lawsuit asking for a temporary restraining order to be placed on Intuit Inc.
Barring a temporary restraining order, the FTC says Intuit would “be free to continue disseminating the deceptive claim that consumers can file their taxes for free using TurboTax when, in truth, in numerous instances, defendant does not permit consumers to file their taxes for free using TurboTax.”
In 2020, a judge rejected a proposed $40 million settlement between Intuit and consumers who argued the company had steered them away from using the free edition of TurboTax even though they qualified to use it.
Have you used Intuit’s TurboTax service to file your taxes? Let us know in the comments!
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1,310 thoughts onTurboTax Class Action Over ‘Free’ Services Settled For $141M
Please add me
Turbo overcharge you every time and they charged for what you never agreed to.
add me
I haven’t received any email yet
I have not received an email yet and I’ve been using TurboTax for the past 10years
Add me I have been paying for years
Yes add me
I definitely was ripped off by turbo taxes Intuit BS in 2020. When finalizing my taxes get to being almost done and I kept being pushed to having to pick what I wanted to pay. Like what I’m trying to choose free nope had to pick paying group then made me get the membership for the audit program in case I needed help during an audit. I did not want that and I was charged ithink $79 bucks for something I couldn’t even use and was charged for my federal to be done and my state to be done. I’m low income for real In Norway would I had of went with them if I had of known what I was being pushed into. I would have went with freetaxusa or irsfreefile. Not like I’m trying to give money away that I definitely don’t have . I’m so sick of these fraudulent businesses misleading us and we’re just at a dam loss until an attorney sees big dollar signs in the heading and more than 1000 people have been affected by the problem. This world has come to be the largest sinkhole of waist , I just can’t believe there is no simple justifying the dam justice no more even if u show the proof.
Add me to this Turbo tax is the way I file every year. I qualify. Thank you!
I used TurboTax the last 5 yrs and this year I especially used them to get the refund advance which I found out some people got it, but majority of us didn’t even get offered. Then when I do due diligence and get to a live customer support agent they are looking at my account with a broader view and the words I hear next were” I see you efile your return and it was accepted but I don’t know why you wasn’t offered the refund. You are within the threshold to have been offered, u never took out an advance from us so I don’t understand what happen. My apologies for that. I’m sorry I can’t be more help. Is their anything else i can help with?” No problem I told her she did all she could and to have a great day on purpose.