Intuit Inc. has completed a $40 million settlement agreement with plaintiffs in a federal class action lawsuit alleging the company engaged in “unfair and deceptive” practices related to its Turbo Tax website and the IRS Free File Program. The settlement was filed in the United States District Court for the Northern District of California, San Francisco Division (Case. No. 3:19-cv-02546-CRB).
According to the terms of the settlement, it will “compensate taxpayers who were eligible to file a federal return for free under the IRS Free File Program but were charged a fee by Intuit on its TurboTax online website.” Claimants are required to “attest that they understood they could file for free under the Free File Program but nevertheless paid a fee to use TurboTax.”
In addition, the settlement “requires Intuit to conform its marketing practices related to its Free Edition product to the FTC’s [Federal Trade Commission’s] online marketing guidelines and to disclose the Free File Program – along with a taxpayer’s qualifications to file for free – on the TurboTax website.” No portion of the $40 million can revert to Intuit.
A preliminary hearing on the agreement is scheduled for December 17th.