ALJ Sides With FTC, Finds Intuit Ran Deceptive Ads

Intuit violated the FTC Act by running deceptive ads for its “free” tax products, an administrative law judge ruled Wednesday, siding with the agency in docket 9408, the FTC announced Friday. The company’s ads misled consumers that they could file their taxes for free with TurboTax, despite millions of U.S. taxpayers being ineligible, the agency alleged in a March 2022 complaint. Filers receiving 1099 forms for gig work and people who earn farm income were ineligible. The agency said about two-thirds of tax filers couldn’t use TurboTax’s free products in 2020. The decision from Chief Administrative Law Judge Michael Chappell is subject to automatic review by the full commission. His order prohibits Intuit from advertising free services unless they’re free for all consumers, and the company must be clear about limitations. Intuit didn’t comment.