By Wyatte Grantham Philips, Business Writer
NEW YORK (AP) --U.S. regulators have barred TurboTax maker Intuit Inc. from advertising its services as "free" unless they are free for all customers, or if eligibility is clearly disclosed.
In an opinion and final order issued Monday, the Federal Trade Commission ruled that Intuit engaged in deceptive practices by running ads claiming consumers could file their taxes for free using
TurboTax though many people did not qualify for such free offerings.
"The character of the past violations is egregious," reads the FTC commissioners' opinion, which details Intuit ads across TV, radio and online over the years. "Intuit blanketed the country with deceptive ads to taxpayers across multiple media channels."
In addition to prohibiting Intuit from marketing its products or services as free unless there's actually no cost for everyone, the FTC's order requires Intuit to disclose what percentage of consumers are eligible and note if a majority of taxpayers do not qualify.
Terms and conditions to obtain a free good or service must also be clearly disclosed or linked to if ad space is limited, the FTC said in its order. The order also bars Intuit from "misrepresenting any material facts about its products or services," including refund policies and price points.
In a statement sent to The Associated Press Tuesday, Intuit said it had appealed what it called the FTC's "deeply flawed decision."
"This decision is the result of a biased and broken system where the Commission serves as accuser, judge, jury, and then appellate judge all in the same case," Intuit stated. The California company later added that it believes it will prevail "when the matter ultimately returns to a neutral body."
Monday's opinion and final order upholds an initial decision from FTC chief administrative law judge D. Michael Chappell, who ruled that Intuit violated federal law by engaging in deceptive advertising back in September.
There was no financial penalty in the FTC's order, but Intuit has previously faced hefty charges over the marketing of "free" services. In a 2022 settlement signed by the attorneys general of all 50 states, Intuit agreed to suspend TurboTax's "free, free, free" ad campaign and pay $141 million in restitution to nearly 4.4 million taxpayers nationwide.
Settlement checks were sent out last year. Those impacted were low-income consumers eligible for free, federally-supported tax services — but paid TurboTax to file their federal returns due to "predatory and deceptive marketing," New York Attorney General Letitia James said.
Creativity unleashed: D&AD releases free annual showcase and trend analysis
D&AD has released its highly sought after Annual available for free as part of its ongoing commitment to nurturing creativity across different communities.
The organization is sharing full access to the D&AD Annual--a summary of the insights, strategies and campaigns that powered the best creative work at the D&AD Awards 2024--and the D&AD Trend Report which explores the themes from the Annual and how they might shape the future.
The D&AD Annual goes “behind the work” of this year’s award-winning creative campaigns across 32 categories and provides exclusive insider insights from the people who brought them to life. Judged by over 300 world-leading designers, advertising executives and skilled creatives, the D&AD Awards represent one of the annual high points of the creative calendar with all winners presented with a D&AD Pencil.
From how conspiracy theory tactics were co-opted to make skincare brand CeraVe go viral, to how Channel 4 worked with multiple directors to portray vignettes of British life, and Apple found inspiration in the transparency of glass to inform the design of their Vision OS, the D&AD Annual shines a light on all the 2024 shortlisted and winning work.
As part of the Annual, D&AD Voices also invites perspectives on major themes represented in the winning work; from the lucrative rise of women’s football penned by journalist and broadcaster Zing Tsjeng and an exploration of how to brand a cultural institution by Art Review’s Louise Benson, to unpacking the new generation of magazines with MagCulture, and climate advertising with Creatives for Climate. The D&AD Annual is available here.
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