TurboTax Has To Refund Customers $141M After Settlement
The parent company of TurboTax, Intuit, has agreed to pay some users $141 million after reaching a settlement with all 50 states. TurboTax was allegedly steering millions of low-income Americans away from free tax filing services.
At the announcement of the settlement the New York Attorney General Letitia James said 4.4 million customers were unfairly charged. The AG stated that Intuit must also suspend its “free, free, free” ad campaign because it falsely lured customers with the promise of free tax preparation services.
A part of the settlement was that Intuit had to admit no wrong doing. They have said that they don’t expect the required changes to impact their business much at all.
The way TurboTax was allegedly doing this was by burying federally supported tax filing products in searches and making them difficult to find. They would instead steer customers towards their paid services. A tactic that affected low income consumers the most.