Intuit TurboTax Settles With Over 4 Million Consumers for $141 Million
Intuit TurboTax, the popular tax preparation software, has reached a settlement with more than 4 million consumers across all 50 states and Washington, D.C. The $141 million settlement stems from allegations that Intuit deceived customers by charging them for services they didn't need.
The refunds are part of a class-action lawsuit that claimed Intuit misled customers into paying for services that the company claimed were necessary for them to file their taxes. The lawsuit specifically targeted Intuit's fees for "MAX Defend and Restore," which offered to help customers in the event of an audit by the IRS. The lawsuit claimed that Intuit's marketing campaign for the service was misleading, and that the services provided were already available for free from the IRS.
The settlement will provide a refund to eligible customers who paid for the "MAX Defend and Restore" service between January 12, 2015, and May 28, 2019. The refunds will vary based on the amount paid by each customer, but are expected to average at least $30 per customer.
In addition to the refunds, Intuit has agreed to change its marketing practices and disclose more clearly what services customers are paying for. The company has also agreed to pay $6.5 million in attorneys' fees and costs to the class-action lawyers who brought the lawsuit.
Intuit has emphasized that it denies any wrongdoing and that the settlement is a way to avoid further litigation. The company has also said that it has already made changes to its marketing practices, and that it now offers more transparent pricing.
While the settlement is a significant hit to Intuit's finances, the company remains one of the largest tax preparation software providers in the United States. The company's flagship product, TurboTax, is used by millions of Americans every year to file their taxes.
The settlement is a reminder to consumers to always be vigilant in understanding the fees they are being charged for services. In this case, it appears that some customers were paying for services they didn't need, and that they could have obtained those services for free from the IRS. It's important for consumers to do their own research and question the need for any additional services before paying for them.
Overall, the Intuit TurboTax settlement is a win for consumers who were paying for services they didn't need. The settlement provides a refund to customers, and also serves as a wake-up call for companies to be more transparent in their marketing and pricing practices.
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