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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
I too have used TurboTax for 5 years corporate company greed
I’ve always used TurboTax for years even by buying the software and was charged fees for state taxes as well.
I’ve filed with turbo for many years and was charged each and every single time except once..
Use turbo tax and was supposed be. Free and was not
I have used turbo tax and was blown away by how much it was once said and done. Not the amoeba quoted me and for near no service but a look over I did them start to finish. And if fact never have received ANY of that yrs return … and it’s been a hassle with no help from turbo tax getting info
Please add me. I used turbo tax for several years, but I keep having to pay to file or alway have pay again more taxes. Which IRS tell me I didn’t pay enough.
I have used Turbo Tax for years. I recall a couple of occasions where I was filing free turbo tax but was redirected and charged instead. It was difficult to opt out or change my info , so I ended up paying the $79.99. I didn’t appreciate this and think this case is valid.
I used Turbo Tax
Received the29.30 settlement. Check was also in my husband’s name and he passed away in January 2,2018. How can I cash or deposit this check at my bank? I was the excecture of his estate. What should I do with this check made out to Richard Wonner, Marie Wonner? Thank you in advance for any help you can give me
I’ve used Turbo tax every time I have filed my taxes.