The tax prep giant is settling a lawsuit filed by the Federal Trade Commission
of ConsumerAffairsA Federal Trade Commission (FTC) lawsuit seeking changes for consumers who use H&R Blocks online tax filing services. H&R Block has agreed to a settlement that will impact the 2025 tax filing season.
This includes a $7 million payment to the FTC to compensate consumers affected by the companys practices.
The FTC alleged that H&R Block misled consumers by advertising free tax filing when most users could not file for free. Many consumers also faced challenges downgrading to cheaper products, including having to contact customer service and experiencing deletion of previously entered data.
The proposed settlement requires H&R Block to make downgrading easier, eliminate data deletion, and allow downgrading without needing customer service assistance. By 2026, consumers who downgrade will be able to continue their tax filing without losing any previously entered information.
Samuel Levine, Director of the FTCs Bureau of Consumer Protection, emphasized the importance of transparent pricing and service options, stating that the FTCs actions will help reduce stress and cost for taxpayers.
"American taxpayers who seek tax-filing help should be able to choose the services they needand know the truth about how much theyll pay, said Levine. The FTCs action today will help lower the stress and expense of tax season for millions of taxpayers.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-11-13 19:13:14
