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FTC bans TurboTax from advertising ‘free’ services, calls it deceptive


The Federal Trade Commission ruled in a final order and opinion Monday that TurboTax, the popular tax filing software, engaged in deceptive advertising and banned the company from advertising its services for free unless it is free for all customers.

The FTC Administrative Law Judge D. Michael Chappell announced the initial decision in September, which the commission upheld Monday. “TurboTax’s predatory and deceptive marketing cheated millions of low-income Americans who were trying to fulfill their legal duties to file their taxes,” said New York Attorney General Letitia James in a May 4, 2023, press release. “Today we are righting that wrong and putting money back into the pockets of hardworking taxpayers who should have never paid to file their taxes.”

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