New York will receive more than $5.6 million as part of a $141 multistate settlement with Intuit regarding the marketing of its TurboTax product while Connecticut will receive a $1.2 million restitution.
New York Attorney General Letitia James led a coalition of 50 states and the District of Columbia in a lawsuit against Intuit that claimed it falsely marketed TurboTax as offering free tax preparation services but charged customers for the service. The lawsuit was spurred by a ProPublica investigative report that determined Intuit used deceptive digital tactics to steer low-income consumers toward its commercial products and away from federally-supported free tax services.
“Intuit cheated millions of low-income Americans out of free tax filing services they were entitled to,” said James. “For years, Intuit misled the most vulnerable among us to make a profit. Today, every state in the nation is holding Intuit accountable for scamming millions of taxpayers, and we”™re putting millions of dollars back into the pockets of impacted Americans. This agreement should serve as a reminder to companies large and small that engaging in these deceptive marketing ploys is illegal.”
“TurboTax marketed their services as ”˜free, free, free,”™ but what they really meant was ”˜fee, fee, fee,”™” added Connecticut Attorney General William Tong. If you are eligible for this restitution, you do not need to take any action. Impacted consumers will automatically receive a notice and check in the mail for $29.64.”