TurboTax, the popular tax preparation software, has reached a $141 million settlement with customers who claimed they were charged for services they didn't need. The company was accused of using misleading advertising to promote its paid version when customers were eligible for free filing.
The Settlement
The settlement was reached in a class-action lawsuit filed against Intuit, the parent company of TurboTax, in San Francisco federal court. The lawsuit claimed that TurboTax intentionally hid its free filing option in search results and charged customers for services they didn't need.
Under the settlement, eligible customers will receive a check for the amount they paid for TurboTax's services, up to $100. Customers who used TurboTax's free filing service but were charged for additional services will receive a $25 refund.
The Response
Many customers were outraged when they discovered they had been charged for services they didn't need. Some even claimed they were forced to pay for TurboTax's paid version because the free version was difficult to find or use.
Intuit denied any wrongdoing but agreed to settle the lawsuit to avoid further legal fees and damage to its reputation. The company also said it has made changes to its website to make it easier for customers to find the free filing option.
Conclusion
The settlement is a victory for TurboTax customers who felt they were taken advantage of by the company's misleading advertising. It also serves as a reminder to companies to be transparent and honest in their advertising practices.
Related video of TurboTax Customers to Receive Checks for $141M Settlement
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