FTC Bans TurboTax 'Free' Advertising Unless All Consumers Can Access

Intuit Appeals FTC Decision, IRS Prepares to Launch Free Tax Filing System

TurboTax, a subsidiary of Intuit, has been banned by the Federal Trade Commission (FTC) from advertising any of its products or services as 'free' unless they are available at no cost to all consumers.
The FTC's decision follows a ruling from a chief administrative law judge in September, stating that TurboTax had violated the FTC Act through ads promoting 'free' tax products and services that many customers did not qualify for.
TurboTax can resume advertising if it clearly discloses the percentage of customers that actually qualify for the free offerings, or if it states that most customers do not qualify for the free products.
Intuit has appealed the FTC's decision, criticizing the commission for serving as 'accuser, judge, jury, and then appellate judge all in the same case.'
Meanwhile, the Internal Revenue Service (IRS) is preparing to roll out a free system for filing taxes directly with the government, available later this year to certain tax filers in 12 states.