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FTC cracks down on H&R Block for deleting tax data when users want to downgrade


It also deceptively marketed products as “free,” the FTC said.

Even when customers later realized they bought a more expensive product than they needed, the FTC alleged, “H&R Block presented them with a series of time-consuming challenges when attempting to downgrade after already spending substantial time entering their tax information.” The company also caught the FTC’s attention last year when the agency warned five tax prep services that using consumer data for other purposes, like advertising, could result in civil penalties if they don’t first get consent. H&R Block’s chief legal officer, Dara Redler, tells The Verge in an emailed statement there are “multiple mechanisms” customers can use to downgrade their products “while ensuring the preparation of accurate tax returns.”

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