Arkansas to receive about $1 million from TurboTax for deceptive advertising
TurboTax, Intuit Inc has agreed to pay about $1 million to Arkansas as part of a multi-state settlement.
The Arkansas Attorney General’s office says the settlement came from a multi-state investigation that found Intuit advised its TurboTax service as free but was charging customers, according to a press release.
Consumers are expected to receive $30 for each year Turbo Tax charged them. About 36,000 Arkansans were reportedly deceived by the company.
“Intuit deliberately deceived consumers into paying for their Turbo Tax service that was actually supposed to be free,” Attorney General Leslie Rutledge said in a statement. “Intuit profited from its lies to Arkansans, and now with this settlement, Intuit will pay over $1 million to Arkansans for its fraud.”
In addition to paying consumers, Intuit will have to suspend ad campaigns that promote TurboTax as a free tax preparation service, provide more information in its marketing and allow consumers to start their tax filing over if they exit one Intuit’s paid products to use a free product.
"We empower our customers to take control of their financial lives, which includes being in charge of their own tax preparation," an Intuit spokesperson told ProPublica in a statement in 2019.
All 50 states and the District of Columbia are a part of the settlement, which is $141 million.