FTC Issues Opinion Finding that TurboTax Maker Intuit Inc. Engaged in Deceptive Practices (2024)

FAQs

FTC Issues Opinion Finding that TurboTax Maker Intuit Inc. Engaged in Deceptive Practices? ›

The Federal Trade Commission has issued an Opinion and Final Order that Intuit Inc., the maker of the popular TurboTax tax filing software, engaged in deceptive advertising in violation of the FTC Act and deceived consumers when it ran ads for “free” tax products and services for which many consumers were ineligible.

The FTC found that Intuit deceptively advertised supposedly “free” tax-filing products and ordered Intuit to cease all deceptive activity and make disclosures to cure the claims in its advertisem*nts.

After independently evaluating the evidence, the Federal Trade Commission has held that “Intuit has engaged in deceptive advertising in violation of the FTC Act” and has issued a comprehensive order against Intuit to prevent the company from future truth-in-advertising violations.

Intuit class action lawsuit overview:

Why: Intuit allegedly failed to adequately safeguard sensitive data which was compromised in a TurboTax and Credit Karma data breach disclosed in March 2024. Where: The TurboTax data breach class action lawsuit was filed in California federal court.

You don't have to. According to the settlement website, eligible customers will receive an email from the settlement fund administrator. In that email, customers will learn of their payment amount. If you think you may be eligible, keep an eye on the email you have used for TurboTax.

The Federal Trade Commission has issued an Opinion and Final Order that Intuit Inc., the maker of the popular TurboTax tax filing software, engaged in deceptive advertising in violation of the FTC Act and deceived consumers when it ran ads for “free” tax products and services for which many consumers were ineligible.

TurboTax securely stores your documents, and our encryption technology protects your personal and financial info, which helps prevent unauthorized access.

The FTC enforces consumer protection laws to stop illegal business practices and get refunds to people who lost money. The chart below includes all active refund programs managed by the FTC. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize.

TurboTax is one of many companies that has a mandatory arbitration clause so even if you don't realize it, using their services you agree to the clause which prohibits you from joining any class action lawsuit or suing them individually in most legal situations.

Has anyone received a TurboTax settlement? ›

On May 4, 2022, a coalition of state attorneys general announced a $141 million settlement with Intuit that compensated Intuit TurboTax customers who paid for tax preparation services that should have been free for them. Approximately 4.4 million consumers nationwide received a payment.

Satisfaction Guarantee/ 60-Day Money Back Guarantee: If you're not completely satisfied with TurboTax Desktop, go to refundrequest.intuit.com within 60 days of purchase and follow the process listed to submit a refund request.

“When Intuit finally disclosed the Data Breach to victims in March 2024, its Breach Notice obfuscated the nature of the breach and the threat it posed—refusing to tell its victims how many people were impacted, how the breach happened on Intuit's systems, when the breach first occurred, or when Intuit discovered the ...

TurboTax customers to receive restitution checks for $141M settlement. WASHINGTON (AP) — Millions of Americans who qualified for free tax services — but were instead deceived into paying TurboTax for their returns — will soon get settlement checks in the mail.

Santa Barbara Tax Products Group, LLC (SBTPG) is the bank that handles the Refund Processing Service when you choose to have your TurboTax fees deducted from your refund.

The FTC's Bureau of Consumer Protection stops unfair, deceptive and fraudulent business practices by collecting reports from consumers and conducting investigations, suing companies and people that break the law, developing rules to maintain a fair marketplace, and educating consumers and businesses about their rights ...

You can request a refund for TurboTax Desktop products using the form below. Only purchases made directly through TurboTax (including TurboTax Advantage) or through one of our authorized retailers/resellers qualify for our 60-day money-back guarantee.

User reports indicate no current problems at TurboTax.

The 33-page Intuit data breach lawsuit alleges the global fintech company, whose services include TurboTax, Credit Karma, QuickBooks and Mailchimp, “lost control” over users' sensitive data when hackers infiltrated its systems, a discovery reportedly made by the company on or around February 27, 2024.