FTC Sues TurboTax Owner Intuit for Advertising Tax Software as ‘Free'

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FTC Sues TurboTax Owner Intuit for Advertising Tax Software as ‘Free'
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The Federal Trade Commission claims Intuit uses “bait and switch” advertising that markets TurboTax as free but charges most users when they file their taxes.

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Kerry McLean, executive vice president and general counsel of Intuit, said the agency's arguments"simply aren't credible." "Far from steering taxpayers away from free tax preparation offerings, our free advertising campaigns have led to more Americans filing their taxes for free than ever before and have been central to raising awareness of free tax prep," McLean said in a written statement.

That definition changes from year to year; for tax-year 2021, Intuit refers to a simple return as one that can be filed on a Form 1040 with limited attached schedules, like one that includes student-loan interest paid, the FTC said."In truth, TurboTax is only free for some users, based on the tax forms they need," according to the FTC lawsuit.

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