Federal Trade Commission
Have you ever spent hours entering complex financial information online only to have it deleted? It would be frustrating enough if it was due to a technical glitch, but the FTC against tax preparation company H&R Block According to the complaint, erasing tax data that consumers had already entered was an intentional sales tactic used by the company to pressure people into purchasing expensive products. Learn more about H&R Block’s conduct, which the FTC alleges is burdensome, deceptive and unfair to consumers.
According to an administrative complaint scheduled to be published soon on the FTC website, H&R Block used an extensive television and online campaign to deceptively advertise its services as “free,” or “nada.” Did. . . Zip. . . zilch” – a time when the service was not free for most filers. Although the ad said the “free” benefit applied to “simple returns,” the FTC said H&R Block would allow consumers to determine whether their return qualifies as “simple.” claims that it has become difficult. Additionally, the FTC said the company frequently changed its definition of “simple.” The complaint cites examples of the confusion and frustration caused by the company’s false claims.
But particularly noteworthy is the way H&R Block allegedly forced people to pay for services they didn’t need. According to the complaint, the company jacked up more expensive services through an online application process without providing a clear breakdown of costs. But when consumers decided to downgrade to his more affordable H&R Block products, the company gave them an unpleasant and unfair surprise, he FTC says. First, I couldn’t downgrade without contacting H&R Block’s customer service department directly. Second, after people spent significant time entering their tax information and then decided to downgrade to the cheaper H&R Block filing product, the FTC said the company presented them with an unfair choice. I am. If you want or use H&R Block, it will erase almost all of the tax information you’ve already entered and you’ll have to start over.
And let me be clear. The FTC claims this is not a system glitch. This was a deliberate sales strategy to discourage consumers from looking for more affordable options. The complaint alleges that H&R Block retained data for consumers who upgraded but deleted data for consumers who downgraded, leaving many consumers with no choice but to overpay or lose all information they had already entered. They claim that they are being forced to make a choice.
The first complaint challenges H&R Block’s policy of requiring consumers who wish to downgrade to contact its customer service department. This is often a time-consuming task, but the company didn’t have to jump through it for customers who were upgrading. Count II alleges that H&R Block’s tactics of asking consumers to pay for expensive products they don’t need or spend hours erasing their data were unfair practices that violated the FTC Act. There is. Count III claims that the company’s “free” filing claims are deceptive.
Even at this early stage, this is an important case for advertisers to follow.
