Security News > 2024 > February > FTC sues H&R Block over deceptive 'free' online filing ads
The U.S. Federal Trade Commission sued tax preparation giant H&R Block over the company's deceptive "Free" online filing advertising and for pressuring people into overpaying for its services.
H&R Block employs 70,000 tax pros working in over 12,000 offices worldwide and has reported a revenue of $3.5 billion in 2023.
"H&R Block's online tax filing products lead consumers into higher-cost products made for more complicated tax filings, despite many consumers not needing the additional tax forms and schedules offered by those products," the FTC said on Friday.
The complaint says H&R Block has long marketed its online tax preparation services as "Free," but this offer is allegedly misleading, as many consumers do not qualify for the free option.
It also highlights various TV and online ads by H&R Block promoting free filing services, often with disclaimers buried in fine print stating that the offer applies only to "Simple returns."
Dara Redler, the Chief Legal Officer at the tax preparation company, told BleepingComputer that H&R Block has provided a free do-it-yourself filing option for over 20 years to assist Americans with their tax filings.