![]() ![]() ![]() The states’ investigation, led by New York and Tennessee attorneys general, found that since 2016 Intuit engaged in deceptive and unfair practices through its use of digital “dark patterns” that limited eligible consumers’ participation in the IRS Free File Program-which Intuit called “Freedom Edition”-and instead steered them to TurboTax’s “Free Edition,” which ultimately required many consumers to upgrade to paid services. Intuit also offers its “TurboTax Free Edition” for taxpayers with “simple” tax returns. Until 2021, Intuit offered a free filing version of TurboTax through the IRS Free File Program for taxpayers earning roughly less than $34,000 and for military members. While the states’ investigation overlapped with the FTC’s action concerning Intuit’s alleged bait-and-switch advertising (i.e., representing the service is “free” but later requiring an upgrade to a paid version), their investigation also had another focus: “dark patterns,” which refers to a digital design feature that is intended to subtly influence a consumer’s online decisions. The state settlement essentially ended the FTC action as well. As part of last week’s settlement agreement, Intuit will cease its advertising campaign promoting its “free, free, free” services in addition to paying the hefty restitution sum. In that action, the FTC sought to definitively resolve that very question. Recently, we wrote about the Federal Trade Commission’s legal action against Intuit for its advertisements regarding “free” tax-filing services. Last week, the attorneys general for all 50 states and the District of Columbia announced a settlement with Intuit, Inc., the owner of TurboTax, which will require the company to hand over $141 million to consumers as restitution for allegedly tricking consumers into paying for tax-filing services when they qualified for free tax-filing services.
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