FRANKFORT, Ky. (FOX 56) — Kentucky Attorney General Daniel Cameron announced Wednesday that he has reached a settlement with TurboTax, more specifically its parent company Intuit Inc.
The settlement is due to the corporation deceiving Kentucky customers into paying for TurboTax’s services that should have been free. Kentucky consumers will receive $1.6 million in restitution as a result of the multi-state settlement.
“Intuit’s deceptive business practices led Kentucky consumers to pay for tax services that they were eligible to receive for free. This settlement recovers more than $1.6 million for Kentuckians and requires the company to stop misrepresenting its online tax preparation products,” said Attorney General Cameron.
As a part of the settlement, Intuit will compensate millions of consumers across America who used TurboTax Free Edition through 2016 and 2018 and had to pay to file even though it was free under the IRS Free File program.
Consumers who were affected will receive $30 for each year they paid for the free service.
Under the settlement, Intuit also agrees to reform its business practices by:
- Suspending TurboTax’s “free, free, free” ad campaign that lured customers with promises of free tax preparation services, only to deceive them into paying for services.
- Refraining from making misrepresentations in connection with promoting or offering any online tax preparation products;
- Enhancing disclosures in its advertising and marketing of free products;
- Designing its products to better inform users whether they will be eligible to file their taxes for free; and
- Refraining from requiring consumers to start their tax filing over if they exit one of Intuit’s paid products to use a free product instead.