Intuit To Settle TurboTax Claims
Intuit Inc (NASDAQ: INTU) agreed to pay $141 million to settle claims by all 50 U.S. states and Washington, D.C.
The states alleged that beginning in 2016, Intuit steered customers eligible for IRS Free File into using TurboTax Free Edition, only to later tell them they needed to pay $59.99 or more to file because their returns were not simple.
Intuit steered at least 4.4 million customers, many with low incomes, into buying online TurboTax products that the company deceptively advertised as "free," Reuters reports.
The customers were eligible for free electronic filing through the Internal Revenue Service (IRS).
The settlement also calls for the largest U.S. online tax preparer to suspend ads containing slogans like "TurboTax Free is free. Free free free free."
"For years, Intuit misled the most vulnerable among us to make a profit," New York Attorney General Letitia James said. "Today, every state in the nation is holding Intuit accountable."
Intuit admitted no wrongdoing and expected a "minimal" impact on its business.
Price Action: INTU shares closed higher by 3.96% at $447.92 on Wednesday.
Image by Okan Caliskan from Pixabay
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