Intuit's (INTU) TurboTax Free Filing Faces Deception Charges
Intuit's INTU TurboTax brand has been recently asked by senator Elizabeth Warren and U.S. representatives Katie Porter and Brad Sherman to provide information regarding employees previously working for federal agencies and about how much money the company makes from its low- and middle-income tax filers.
The senator and the representatives alleged through a public letter that Intuit not only misleads consumers but also utilizes former government officials to shield that from the Fed agencies. They claim that Intuit hides its IRS Free File program data from Google by using dark 9 patterns while tricking the tax filers into its in-house 'freemium' edition to pay for services that are otherwise free under the Free File Program.
Intuit is required to provide details of the number of government workers it has employed since 1999 and the amount of money it makes from tax filers from $73,000 or below income brackets. The company is currently reviewing the public letter and intends to respond subsequently.
Intuit Inc. Price and Consensus
Intuit Inc. price-consensus-chart | Intuit Inc. Quote
Notably, in March this year, the Federal Trade Commission had accused Intuit of deceiving consumers with advertisements pitching "free" tax filing by issuing an administrative complaint against the company. Further, the Commission filed a complaint with the U.S. District Court in the Northern District of California, asking them to take immediate action against Intuit's deceptive practices.
However, Intuit vigorously challenged the lawsuit intending to present facts in support of their position in the court.
Intuit's TurboTax has been offering income tax preparation products and services to over 100 million Americans, allowing them to file their taxes for free for the last eight years.
Zacks Rank & Key Picks
Intuit currently carries a Zacks Rank #3 (Hold). Shares of INTU have climbed 16.6% in the past year.
Some better-ranked stocks from the broader Computer and Technology sector are Arista Networks ANET and Gogo GOGO, each sporting a Zacks Rank #1 (Strong Buy), and Analog Devices ADI carrying a Zacks Rank of 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks' first-quarter 2022 earnings has been revised upward by 4 cents to 81 cents per share over the past 60 days. For 2022, earnings estimates have moved 4.5% north to $3.69 per share in the past 60 days.
Arista Networks' earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 7.7%. Shares of ANET have rallied 60.4% in the past year.
The Zacks Consensus Estimate for Gogo's first-quarter 2022 earnings has been revised downward by a penny to 13 cents per share over the past seven days. For 2022, Gogo's earnings estimates have moved north by 25% to 65 cents per share in the past 60 days.
Gogo's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 65%. Shares of GOGO have soared 118.8% in the past year.
The Zacks Consensus Estimate for Analog Devices' second-quarter fiscal 2022 earnings has been revised upward by 4 cents to $2.12 per share over the past seven days. For fiscal 2022, earnings estimates have moved north by 11 cents to $8.43 per share in the past seven days.
Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have increased 2.2% in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Analog Devices, Inc. (ADI) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Gogo Inc. (GOGO) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
