Attorney General Kris Mayes has joined forces with a group of 22 attorneys general to back the Federal Trade Commission's (FTC) order, which aims to put an end to Intuit's misleading TurboTax advertisements, asserting the product as "free" when it often was not. As stated in a briefing submitted for the Intuit v. Federal Trade Commission case, the attorneys general collectively argue for the U.S. Court of Appeals for the Fifth Circuit to dismiss Intuit's appeal, which seeks to reverse the FTC’s cease and desist order, according to a press release from Arizona Attorney General's office.
"Intuit's deceptive practices have harmed millions of consumers, particularly low-income families and members of the military who were misled into paying for services that should have been free,” Mayes asserted, emphasizing the importance of upholding the FTC’s order for the protection of consumers. The brief outlines how Intuit manipulated search results to seemingly prioritize its paid service, even for those individuals like active-duty members of the military and low-income taxpayers who qualified to file taxes for free. Consequently, Intuit profited at the expense of consumers who were, in theory, entitled to file without a fee.
In 2022, after state investigations into Intuit's deceptive marketing strategies, a host of 50 States and the District of Columbia reached a $141 million settlement with the company. However, despite the settlement, Intuit stands accused to have continued its misleading advertising. Prima facie, it seemed the company was offering free tax-filing services, when in actuality, this was only applicable to a small section of taxpayers. The FTC’s subsequent order required Intuit to clearly stop advertising their services as “free” without the aforementioned condition, before Intuit responded by appealing the injunction.
In their brief, the attorneys argue that the FTC not only correctly applied the consumer protection rules but also Intuit's claim that the FTC’s order duplicates the states' settlement is baseless. They posit that the order complements state settlements by covering a broader array of deceptive strategies and ensuring that all advertised free services are genuinely available at no cost. The attorneys general led by District of Columbia Attorney General Schwalb and Illinois Attorney General Raoul also emphasize that consumer protection operates on dual fronts, with both state and federal laws serving to prevent companies from misleading American consumers. The collective group, including California, Colorado, Connecticut, and many other states, upholds this assertion.
More information on the brief and the ongoing case can be found at the Arizona Attorney General's office website.
