FTC sues Turbo Tax parent Intuit for deceiving customers with ads for ‘free’ tax filing product they cannot use

The Federal Trade Commission said Tuesday it is filing a suit against Turbo Tax maker Intuit Inc. for deceiving customers with ads for a “free” tax filing product that they could not use. “In addition, to prevent ongoing harm to consumers rushing to file their taxes, the Commission also filed a federal district court complaint asking a court to order Intuit to halt its deceptive advertising immediately, the agency said in a statement. Intuit has engaged in years of marketing a free product that cannot be used for taxpayers who get a 1099 form for working in the gig economy, or for workers who earn farm income, said the statement. The company bought ads during major events, including the Super Bowl and this year’s NCAA Basketball Tournament. The FTC has also authorized the filing of an administrative complaint alleging its practices are illegal. It said both complaints allege that it violated the FTC Act. Intuit shares were flat Tuesday, but have fallen 25% in the year to date, while the S&P 500 has fallen about 3%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.