TurboTax Ordered to Pay Back Montanans for Deceptive Practices

Nearly 17,000 Montanans will benefit from a settlement reached between Montana Attorney General (AG) Austin Knudsen and TurboTax, according to a press release on May 6. 

This settlement resulted from a lawsuit filed earlier this year which alleged that Intuit TurboTax used deceptive and unfair marketing practices in its ads as well as its online functionality. Affected individuals will receive a payment directly from the settlement in the next few months, the AG’s office stated, which will be automatic and not require one to file a claim.

A 2019 report by ProPublica, a non-profit journalism firm, sparked the lawsuit by claiming Intuit has been on a “20-year fight to stop Americans from filing their taxes for free,” and further claiming Intuit “knows it’s deceiving people.”

The lawsuit, filed by Knudsen and eight other attorney generals, states in part: “In 2018, Intuit employees responsible for marketing strategy feared that the name change from ‘TurboTax Free File Program’ would negatively impact the ranking of the company’s ‘freemium’ product.

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