FTC orders Intuit to stop advertising TurboTax as free
Intuit engaged in deceptive marketing practices and violated federal law prohibiting unfair business practices
TurboTax must inform consumers that most filers will not qualify for free tax filing services
The Federal Trade Commission (FTC) has ordered the maker of TurboTax, Intuit, to stop advertising its popular tax filing software as free when many consumers are ineligible. The FTC found that Intuit engaged in deceptive marketing practices and violated federal law prohibiting unfair business practices. According to the FTC's final order, which was released on Monday (2024-01-23), TurboTax must inform consumers that most filers will not qualify for free tax filing services, which is not actually
The Federal Trade Commission (FTC) has ordered the maker of TurboTax to stop what it called years of widespread deceptive advertising for 'free' tax-filing software.
Intuit raised objections during the process but these were dismissed by the FTC.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(90%)
The article is deceptive in several ways. Firstly, the title of the article claims that TurboTax has been ordered to cease 'deceptive advertising' for free tax-filing software when in fact it was only ordered to stop a specific campaign and not all its advertising. Secondly, Intuit continues to tout free tax prep on their website even though most customers are not eligible for the program. The article also fails to disclose that TurboTax is owned by ProPublica's parent company, which could be seen as a conflict of interest.
The title of the article claims that TurboTax has been ordered to cease 'deceptive advertising' for free tax-filing software when in fact it was only ordered to stop a specific campaign and not all its advertising.
The article fails to disclose that TurboTax is owned by ProPublica's parent company, which could be seen as a conflict of interest.
Intuit continues to tout free tax prep on their website even though most customers are not eligible for the program.
Fallacies
(85%)
The article contains several examples of deceptive advertising by the maker of TurboTax. The company used a false claim that its tax-filing software was free when in fact it charged customers for filing taxes even if they were eligible to do so for free through a government program. This is an example of bait and switch, which is considered a form of deceptive advertising.
A screenshot from the TurboTax website in 2019 that stated the product was “free Guaranteed.”
An ad from Intuit's TV campaign in 2018 that featured scenes of people just saying the word “free” for 30 seconds.
Bias
(85%)
The authors demonstrate bias by using language that depicts Intuit as dishonest and deceptive. They use phrases like 'deceptive advertising', 'harness the power of “free” in a dishonest way', and refer to Intuit's tactics as an 'abuse of power'. The authors also imply that TurboTax is not truly free, despite acknowledging that some users may qualify for free filing. This framing suggests a negative view of Intuit and its business practices.
Intuit’s ad tactics have been dishonest
ProPublica revealed how millions of Americans were lured into paid tax preparation products even though they were eligible to file for free through a government-sponsored program.
The Federal Trade Commission has ordered the maker of TurboTax to stop what it called years of widespread deceptive advertising
The order, released Monday, was accompanied by a 93-page opinion that harshly criticized Intuit
Site
Conflicts
Of
Interest (50%)
The authors of the article have a conflict of interest with Intuit as they are reporting on deceptive advertising by TurboTax which is owned by Intuit. The FTC has ordered TurboTax to cease its deceptive advertising and ProPublica has been covering this topic extensively.
The article mentions that the FTC had previously investigated Intuit for false claims about its free tax filing software, which is a product offered by TurboTax. The authors also mention that they have reported on deceptive advertising practices by TurboTax in the past.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of deceptive advertising as they are reporting for ProPublica which is known to be critical of Intuit and TurboTax.
The US Federal Trade Commission (FTC) on Monday barred TurboTax maker Intuit from advertising or marketing services as “free” when many consumers were in fact ineligible.
Intuit continued running ads knowing that they led consumers to believe they could file their returns for free even though approximately two-thirds of taxpayers are not eligible.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(80%)
The article is deceptive because it states that TurboTax services are free when many consumers were ineligible. The company engaged in deceptive practices by blanketing the country with ads and continuing to run them even though approximately two-thirds of taxpayers are not eligible.
The character of prior violations was egregious.
Fallacies
(85%)
The article contains an appeal to authority fallacy by stating that the US Federal Trade Commission (FTC) has barred TurboTax maker Intuit from advertising or marketing services as 'free' when many consumers were ineligible. The FTC is a government agency and its decision should be taken at face value, but it does not necessarily mean that there are no fallacies present in the article.
The character of prior violations was egregious.
Bias
(85%)
The article reports that the US Federal Trade Commission (FTC) has barred TurboTax maker Intuit from advertising or marketing services as 'free' when many consumers were in fact ineligible. The company engaged in deceptive practices and blanketed the country with ads leading consumers to believe they could file their returns for free, even though approximately two-thirds of taxpayers are not eligible. This is an example of monetary bias.
Intuit continued running the ads, knowing that they led consumers to believe that they could file their returns for free
The character of prior violations was 'egregious'
Under terms of the settlement with states, Intuit did not admit wrongdoing.
The Federal Trade Commission is barring Intuit from advertising its popular TurboTax product as free when most consumers have to pay to use the tax filing software.
Intuit raised objections during the process but these were dismissed by the FTC.
Accuracy
Millions of approximately two-thirds of tax filers were ineligible to use TurboTax's free product in 2020, according to the FTC.
Intuit said it would immediately appeal the FTC's order.
The company has always been clear, fair and transparent with its customers and is committed to free tax preparation.
Intuit agreed to pay $141 million over allegations its TurboTax software misled low-income Americans into paying to file their taxes when they were eligible for free.
Deception
(80%)
The article is deceptive in its use of the word 'free' to advertise TurboTax. The FTC has ruled that Intuit cannot market a service as free unless it is free for all customers or if they make clear the percentage of taxpayers who would qualify for the product. In this case, millions of tax filers were ineligible to use TurboTax's free product in 2020, and Intuit blanketed the country with deceptive ads. The article also fails to disclose that Intuit has previously been fined $141 million for misleading low-income Americans into paying for tax preparation software when they were eligible to file for free.
Intuit said it would immediately appeal the FTC's order.
Millions — or approximately two-thirds of tax filers — were ineligible to use TurboTax's free product in 2020, according to the FTC.
The company has always been clear, fair and transparent with its customers and is committed to free tax preparation.
The FTC's final order follows an administrative ruling in September prohibiting Intuit from marketing a service as free unless it is free for all customers, or unless the company made clear the percentage of taxpayers that would qualify for the product.
Fallacies
(85%)
The article contains several fallacies. The author uses an appeal to authority by stating that the Federal Trade Commission (FTC) has ruled against Intuit's advertising practices as deceptive. However, this statement is not enough evidence to support the claim and it would be more accurate for the author to provide a direct quote from the FTC ruling or order. The article also contains an example of inflammatory rhetoric by stating that
Bias
(85%)
The article contains multiple examples of bias. The author uses language that dehumanizes the FTC and its actions by calling them 'egregious'. This is an example of emotional appeal which can be used to manipulate readers into forming a certain opinion without providing evidence or logical reasoning. Additionally, the author quotes Intuit's statement saying they will immediately appeal the order but does not provide any context on why this would matter to readers. The article also uses language that demonizes low-income Americans by implying that they were misled and cheated by TurboTax software which is a form of victim blaming.
For at least six years, Intuit blanketed the country with deceptive ads to taxpayers across multiple media channels,
The FTC's final order follows an administrative ruling in September prohibiting Intuit from marketing a service as free unless it is free for all customers, or unless the company made clear the percentage of taxpayers that would qualify for the free product.
Site
Conflicts
Of
Interest (50%)
The author has a conflict of interest with the topic 'Federal Trade Commission' and 'Intuit', as they are both involved in a $141 million settlement. The article does not disclose this conflict.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of deceptive advertising as they are reporting on Intuit's $141 million settlement with government regulators for this issue.
The FTC has barred TurboTax maker Intuit from advertising 'deceptive' free services.
Intuit engaged in deceptive marketing that violated federal law prohibiting unfair business practices.
Accuracy
The Federal Trade Commission (FTC) has barred TurboTax maker Intuit from advertising 'deceptive' free services.
Deception
(50%)
The article is deceptive in its advertising of free tax services. The company behind the popular tax filing software TurboTax engaged in 'deceptive advertising' when it ran ads for free tax services that many customers were ineligible for. Intuit was ordered to stop advertising any free products and services unless they are free for all consumers, or unless the company discloses on the ad the percentage of people who would be eligible for the unpaid offerings.
Intuit was ordered to stop advertising any free products and services unless they are free for all consumers, or unless the company discloses on the ad the percentage of people who would be eligible for the unpaid offerings. This is an example of deception by omission as Intuit did not provide this information in their ads.
The article states that TurboTax engaged in 'deceptive advertising' when it ran ads for free tax services. This is an example of deception by omission as Intuit did not disclose that many customers were ineligible for these so-called 'free' products and services.
The article states that about two-thirds of tax filers in 2020 would have been ineligible for TurboTax's free offerings, such as freelance workers who received 1099 forms and people who earned farm income. This is an example of deception by omission as Intuit did not disclose that many customers were ineligible for these so-called 'free' products and services.
Fallacies
(85%)
The article contains several fallacies. The author uses an appeal to authority by citing the Federal Trade Commission (FTC) as a source of information. However, this does not necessarily mean that the FTC's opinion is accurate or unbiased. Additionally, the author uses inflammatory rhetoric when describing Intuit's advertising as
The vast majority of Intuit’s customers couldn’t take advantage of what the company claimed it was providing at no charge.
<em>Instead</em>, they were upgraded into costly deluxe and premium products.
Bias
(85%)
The article is biased towards the FTC's decision to bar Intuit from advertising its free services as 'deceptive'. The author uses language that portrays Intuit in a negative light and implies that their actions were intentionally misleading. Additionally, the article quotes Samuel Levine, director of the FTC's Bureau of Consumer Protection who is likely to have a bias towards his agency's decision. Furthermore, the article mentions how about two-thirds of tax filers in 2020 would have been ineligible for Intuit's free offerings and that they were upgraded into costly deluxe and premium products which is not entirely accurate as it does not take into account other factors such as income level, education or access to technology. The article also mentions how the FTC first sued Intuit in March 2022 over the ads pitching free TurboTax products and that they agreed to pay $141 million to customers across the U.S. which is not entirely accurate as it does not take into account other factors such as legal fees or settlement costs.
The article mentions how the FTC first sued Intuit in March 2022 over the ads pitching free TurboTax products and that they agreed to pay $141 million to customers across the U.S. but it does not take into account other factors such as legal fees or settlement costs
The article mentions that about two-thirds of tax filers in 2020 would have been ineligible for Intuit's free offerings but it does not take into account other factors such as income level, education or access to technology
The article uses language like 'deceptive' and 'misleading' when describing Intuit's advertising of its free services
The author quotes Samuel Levine, director of the FTC's Bureau of Consumer Protection who is likely to have a bias towards his agency's decision
Site
Conflicts
Of
Interest (50%)
Joe Hernandez has a conflict of interest with Intuit as he is reporting on their deceptive advertising practices related to free services. He also reports on the $141 million settlement with attorneys general over similar complaints.
>2/3rds of tax filers in 2020 would have been ineligible for Intuit's free offerings
farm income
Author
Conflicts
Of
Interest (50%)
The author of this article may have a conflict of interest with Intuit and TurboTax. He is reporting on the FTC's decision to bar them from advertising their free services as deceptive, but he does not disclose that he works for NPR, which is owned by Vivendi Universal Media, a parent company of Intuit competitor Credit.com. This could compromise his objectivity and impartiality in covering the story.
Joe Hernandez writes for NPR, but does not disclose that he works for an affiliate of a rival of Intuit.
The FTC's Final Order prohibits Intuit from advertising or marketing that any good or service is free unless it is free for all consumers or it discloses clearly and conspicuously the percentage of taxpayers or consumers that qualify for the free product or service. Alternatively, if the good or service is not free for a majority of consumers, it could disclose that a majority of consumers do not qualify
Intuit must provide clear disclosures in their ads regarding who qualifies for free tax filing services.
TurboTax must inform consumers that most filers won't qualify for the service, which is not actually 'free'.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(90%)
The article is deceptive because it uses the word 'free' to advertise TurboTax products and services without clearly stating that they are only free for simple returns. The FTC has ruled that this advertising violates US law by misleading consumers about the availability of these products.
The article states,
Fallacies
(85%)
The article contains an example of a false dilemma fallacy. The author presents the options as if they are mutually exclusive when in fact there is room for both to be true. Intuit's advertising claims that TurboTax is free but also states that it requires payment for some services, creating a false dilemma between being able to file taxes without paying and having access to additional features.
Intuit "engaged in deceptive advertising in violation of the FTC Act and deceived consumers when it ran ads for 'free' tax products and services for which many consumers were ineligible,ǣ
Bias
(85%)
The article reports that the Federal Trade Commission (FTC) has ruled against Intuit for deceptive advertising of TurboTax. The FTC found that Intuit's claim of 'free tax products and services' was not accurate as many consumers were ineligible for it. The ruling requires Intuit to disclose clearly and conspicuously the terms, conditions, and obligations required to obtain the free product or service.
The FTC found that Intuit's claim of 'free tax products and services' was not accurate as many consumers were ineligible for it.
Site
Conflicts
Of
Interest (50%)
The article by Jon Brodkin discusses the FTC's order against Intuit for advertising TurboTax as free when it is not. The author has a conflict of interest on this topic because he works for Ars Technica which receives funding from companies such as Intuit.
The article mentions that the FTC ordered Intuit to stop advertising TurboTax as free, but does not disclose any information about how they came to this decision. This suggests a potential conflict of interest on behalf of Ars Technica and its funding sources.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topic of TurboTax as they are reporting for Ars Technica which is owned by Intuit. The article also mentions that Intuit was found to have violated US law by advertising TurboTax as free.
