The latest definition is "a return that can be filed on a Form 1040 with limited attached schedules to cover a few distinct tax situations, including student loan interest paid." Intuit has repeatedly changed its definition of "simple tax return" over the past few years, the FTC said.
#Free turbotax 2016 federal and state for free
The fine-print disclaimer at the end of commercials informs viewers "that the offer is limited to consumers with 'simple tax returns' or 'simple US returns only.'" The FTC said these "disclaimers are inadequate to cure the misrepresentation that consumers can file their taxes for free using TurboTax." The disclaimers are "disproportionately small," appear for just a few seconds, and are "often in font color similar to the background color, and are not read by a voiceover." Advertisement The FTC's emergency motion asked the court to "immediately halt Defendant Intuit Inc.'s deceptive advertising of TurboTax." FTC: Fine-print disclaimers inadequate "In several ads, the word 'free' is repeated over 40 times in a 30-second ad," the FTC said. The Intuit commercials cited by the FTC include one with an auctioneer repeatedly saying "free," "another in which a court stenographer recorded a legal proceeding in which 'free' was the only word used, and another in which an exercise class instructor chants 'free' while leading a group workout," the FTC said. Intuit said it will fight the lawsuit in a response that called the FTC's allegations inaccurate. "Much of Intuit's advertising for TurboTax conveys the message that consumers can file their taxes for free using TurboTax, even going so far as to air commercials in which almost every word spoken is the word 'free,'" the FTC said in its complaint filed in US District Court for the Northern District of California. The FTC said Intuit makes misleading claims about TurboTax in paid advertisements and on its website.
The FTC asked a judge to issue a temporary restraining order and preliminary injunction forcing Intuit to stop "disseminating the deceptive claim that consumers can file their taxes for free using TurboTax when in truth, in numerous instances Defendant does not permit consumers to file their taxes for free using TurboTax." If approved by the court, a proposed order submitted by the FTC would force Intuit to either stop claiming its product is free or to conspicuously include all the limitations in ads "so as to leave no reasonable probability that the terms of the offer might be misunderstood." Intuit's deceptive tactics pushed customers toward paid products-even in cases where they were eligible for the no-cost Free File program for people with low and moderate incomes, the FTC said. The Federal Trade Commission sued Intuit on Monday, alleging that it deceptively advertises "free" tax filing with TurboTax.
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