Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 1 of 31
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`
`
`Roberto Anguizola (IL Bar No. 6270874)
`Frances Kern (MN Bar No. 395233)
`Rebecca Plett (VA Bar No. 90988)
`James Evans (VA Bar No. 83866)
`Federal Trade Commission
`600 Pennsylvania Ave., NW, Mailstop CC-5201
`Washington, DC 20580
`(202) 326-3284 / ranguizola@ftc.gov
`(202) 326-2391 / fkern@ftc.gov
`(202) 326-3664 / rplett@ftc.gov
`(202) 326-2026 / james.evans@ftc.gov
`
`Attorneys for Plaintiff
`Federal Trade Commission
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`
`
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF CALIFORNIA
`SAN JOSE DIVISION
`
`No. 5:22-cv-1973
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`Complaint for a Temporary Restraining
`Order and Preliminary Injunctive Relief
`Pursuant to Section 13(b) of the Federal
`Trade Commission Act, 15 U.S.C. § 53(b)
`
`Plaintiff,
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`Federal Trade Commission,
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`v.
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`Intuit Inc.,
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`Defendant.
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`Plaintiff, the Federal Trade Commission (“FTC”), petitions this Court to enter a
`temporary restraining order and grant a preliminary injunction enjoining Inuit Inc. (“Defendant”
`or “Intuit”) from engaging in deceptive acts or practices in connection with the advertising,
`marketing, promotion, distribution, and sale of online tax preparation products and services,
`including TurboTax. The FTC seeks this provisional relief pursuant to Sections 5(a) and 13(b) of
`the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 45(a) & 53(b). Absent such
`provisional relief, Defendant would be free to continue disseminating the deceptive claim that
`consumers can file their taxes for free using TurboTax when in truth, in numerous instances
`Defendant does not permit consumers to file their taxes for free using TurboTax.
`The Commission requires the aid of this Court to prevent interim harm to consumers
`during the pendency of an administrative trial on the merits. The Commission has already
`initiated an administrative proceeding, pursuant to Section 5 of the FTC Act, 15 U.S.C. § 45, by
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`Complaint for TRO and PI
`No. 5:22-cv-1973
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 2 of 31
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`filing an administrative complaint on March 28, 2022. The administrative hearing will determine
`whether Defendant’s representations violate Section 5 of the FTC Act, 15 U.S.C. § 45, and will
`provide all parties a full opportunity to conduct discovery and present testimony and other
`evidence regarding Plaintiff’s allegations.
`SUMMARY OF THE CASE
`Defendant Intuit advertises, markets, promotes, distributes, and sells TurboTax, a
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`commonly-used online tax preparation service that enables users to prepare and file their income
`tax returns. (As used in this Complaint, “TurboTax” only refers to online products and services.)
`Much of Intuit’s advertising for TurboTax conveys the message that consumers
`2.
`can file their taxes for free using TurboTax, even going so far as to air commercials in which
`almost every word spoken is the word “free.” For example, an ad called “Auctioneer,” which
`depicts a cattle auction with a fast-talking auctioneer and a crowd of grizzled cowboys:
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`
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`AUCTIONEER: And free, and free, and free, and free, and free.
`Now a bidder and free! Now give me another bidder and free, and
`a free here and a free free free a free free free. Now a bidder and
`free! Now give me another bidder and free, and a free free free.
`And free, and free, and free, and free free free and free. Here we go
`at free, free, free and free. Free! Now give me another bidder and
`free. Hit free and here, free, free, free, freeeeeeeeeeeee. Free!
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`Complaint for TRO and PI
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 3 of 31
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`VOICEOVER: That’s right, TurboTax Free Edition is free. See
`details at TurboTax.com.
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`In truth, TurboTax is only free for some users, based on the tax forms they need.
`3.
`For many others, Intuit tells them, after they have invested time and effort gathering and
`inputting into TurboTax their sensitive personal and financial information to prepare their tax
`returns, that they cannot continue for free; they will need to upgrade to a paid TurboTax service
`to complete and file their taxes.
`Until 2021, Intuit offered a free online version of TurboTax through the IRS Free
`4.
`File Program, a public-private partnership with the IRS, that was available to low-income
`consumers regardless of which tax forms they need.
`As detailed herein, Intuit has engaged in, and is engaging in, deceptive business
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`practices in the advertising, marketing, distribution, and sale of TurboTax.
`JURISDICTION AND VENUE
`This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1337(a),
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`and 1345.
`Venue is proper in this District under 28 U.S.C. § 1391(b)(1), (b)(2), (c)(2), and
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`(d), and 15 U.S.C. § 53(b).
`Divisional assignment: Divisional assignment is proper in the San Jose Division
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`because a substantial part of the events or omissions giving rise to the claim occurred in Santa
`Clara County. L.R. 3-2(c), (e).
`Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), provides in pertinent part:
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`Whenever the Commission has reason to believe—
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`(1) that any person, partnership, or corporation is violating, or is
`about to violate, any provision of law enforced by the Federal
`Trade Commission, and
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`(2) that the enjoining thereof pending the issuance of a complaint
`by the Commission and until such complaint is dismissed by the
`Commission or set aside by the court on review, or until the order
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`of the Commission made thereon has become final, would be in the
`interest of the public—
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`the Commission by any of its attorneys designated by it for such
`purpose may bring suit in a district court of the United States to
`enjoin any such act or practice. Upon a proper showing that,
`weighing the equities and considering the Commission’s likelihood
`of ultimate success, such action would be in the public interest, and
`after notice to the defendant, a temporary restraining order or a
`preliminary injunction may be granted without bond ….
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`Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), authorize nationwide service of
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`process, and personal jurisdiction exists where service is effected pursuant to federal statute. Fed.
`R. Civ. P. 4(k)(1)(C). Additionally, Defendant conducts business in this District. Defendant is
`subject to personal jurisdiction in this District, and venue is proper in this District under 28
`U.S.C. § 1391(b)(1), (b)(2), (c)(2), and (d), and 15 U.S.C. § 53(b).
`PLAINTIFF
`The FTC is an independent agency of the United States Government created by
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`the FTC Act, which authorizes the FTC to commence this district court civil action by its own
`attorneys. 15 U.S.C. §§ 41-58. The FTC enforces Section 5(a) of the FTC Act, 15 U.S.C. § 45(a),
`which prohibits unfair or deceptive acts or practices in or affecting commerce.
`The FTC is authorized to initiate federal district court proceedings to seek
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`preliminary injunctive relief pending the Commission’s adjudication of the challenged conduct in
`an administrative proceeding. 15 U.S.C. § 53(b).
`DEFENDANT
`Defendant Intuit Inc. is a Delaware corporation with its principal place of
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`business in Mountain View, California.
`Intuit transacts or has transacted business in this District and throughout the
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`United States. At all times relevant to this Complaint, acting alone or in concert with others,
`Intuit has advertised, marketed, promoted, distributed, or sold TurboTax, an online tax
`preparation service that enables users to prepare and file their income tax returns, to consumers
`throughout the United States.
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 5 of 31
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`COMMERCE
`At all times relevant to this Complaint, Intuit has maintained a substantial course
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`of trade in or affecting commerce, as “commerce” is defined in Section 4 of the FTC Act, 15
`U.S.C. § 44.
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`I.
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`DEFENDANT’S BUSINESS ACTIVITIES
`TurboTax’s “Freemium” Version: TurboTax Free Edition
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` also involves persuading consumers to upgrade from
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` involves, in part, growing Intuit’s customer
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`base by offering free services to consumers
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`free to paid versions of TurboTax.
` further involves “brand loyalty,” or retention of
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`consumers who previously filed their taxes for free in the “freemium” version of TurboTax
`returning to TurboTax in subsequent years when they are no longer eligible for the “freemium”
`version, and paying Intuit for a paid version of TurboTax.
`Since at least 2017, Intuit has called the “freemium” version of TurboTax the
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`“TurboTax Free Edition.” In 2016, Intuit called the “freemium” version of TurboTax the “Federal
`Free Edition.”
`The “freemium” version of TurboTax is available only to consumers with
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`“simple” tax returns, as defined by Intuit; other consumers are required to upgrade to paid
`versions of TurboTax.
`In 2017 and 2018, when consumers filed tax returns for Tax Year (“TY”) 2016
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`and 2017 (e.g. taxes filed in 2017 for income earned in 2016), Intuit defined a “simple” tax
`return as a return that could be filed using a 1040A or 1040EZ tax form.
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`In 2019 and 2020, when consumers filed tax returns for TY 2018 and 2019, Intuit
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`defined a “simple” tax return as a return that could be filed on a Form 1040, with no attached
`schedules.
`In 2021, when consumers filed tax returns for TY 2020, Intuit defined a “simple”
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`tax return as a return that could be filed on a Form 1040, with no attached schedules, except to
`claim unemployment income.
`Intuit currently (for TY 2021) defines “simple” tax return as a return that can be
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`filed on a Form 1040 with limited attached schedules to cover a few distinct tax situations,
`including student loan interest paid.
`Consumers who receive income reported through certain types of IRS Form 1099
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`are not eligible for the “freemium” version of TurboTax, regardless of their income. This
`includes consumers who receive independent contractor or small business income, such as
`consumers working in the gig economy by, for example, providing rideshare services or
`delivering groceries.
`From TY 2018 to at least TY 2019, consumers who claimed student loan interest
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`deductions were not eligible for the “freemium” version of TurboTax, regardless of their income.
`Advertising Practices: Intuit’s Ads Misrepresent that Consumers Can File Their
`II.
`Taxes for Free Using TurboTax
`Since at least 2016, Intuit has promoted TurboTax through advertising that
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`represents that consumers can file their taxes for free using TurboTax.
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`Intuit has employed ads, including via television, YouTube, and other social
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`media, marketing the “freemium” version of TurboTax, including but not limited to those in its
`“Absolute Zero” and “Free, Free, Free, Free” campaigns.
`Intuit’s “Absolute Zero” campaign informed consumers “at least your taxes are
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`free.”
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 7 of 31
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`For the Absolute Zero campaign, Intuit’s goal was for consumers to believe the
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`offering was truly free, and Intuit included the words “Free Guaranteed” in its Absolute Zero
`marketing to bolster and emphasize the claim that the offer was truly free.
`Intuit also continues to run an ad campaign it calls “Free, Free, Free, Free” in
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`which “free” is essentially the only word spoken by the actors in the commercials, until the voice
`over at the end of the advertisement. Intuit used at least six different advertisements in this
`campaign, including an advertisement in which “free” was a word in a spelling bee, another in
`which a court stenographer recorded a legal proceeding in which “free” was the only word used,
`and another in which an exercise class instructor chants “free” while leading a group workout. A
`freeze frame with closed captioning from the exercise class commercial, which Intuit is currently
`airing, appears below. In several ads, the word “free” is repeated over 40 times in a 30-second
`ad.
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`Commercials in the “Free, Free, Free, Free” campaign have informed consumers
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`that “TurboTax Free is free, free free free free.”
`35. Many of Intuit’s ads contain a fine print disclaimer at the end of the commercial
`informing consumers that the offer is limited to consumers with “simple tax returns” or “simple
`U.S. returns only.”
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 8 of 31
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`The disclaimers are inadequate to cure the misrepresentation that consumers can
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`file their taxes for free using TurboTax, when in truth, in numerous instances Intuit does not
`permit consumers to file their taxes for free using TurboTax. The disclaimers:
`Are disproportionately small compared to the prominent text emphasizing
`a)
`that the service is free.
`Appear for just a few seconds, when the commercials aired in 15-, 30-,
`and 60-second versions.
`Are in writing only, often in font color similar to the background color,
`and are not read by a voiceover.
`Depicted below is a copy of a screen displayed to consumers during commercials
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`aired as part of the “Free, Free, Free, Free” campaign, which includes a fine print disclaimer that
`the free offer was available only to consumers with “simple U.S. returns.”
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`b)
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`c)
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`38. What “simple” means can be a matter of interpretation, and Intuit’s definition of
`“simple” has changed over time.
`39. While the above screen was shown to consumers during commercials, in at least
`some of Intuit’s commercials, an announcer said: “That’s right, TurboTax Free is free. Free, free
`free free.” The announcer did not read the fine print disclaimer that it is for the “Free Edition
`product only. For simple U.S. returns.” Intuit has never offered a product or service named only
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 9 of 31
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`“TurboTax Free”—those words have always been a component of longer names such as
`“TurboTax Free Edition” (for the “freemium” version of TurboTax).
`Depicted below is a copy of a screen displayed to consumers during commercials
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`currently airing as part of the “Free, Free, Free, Free” campaign, which includes a similar fine
`print disclaimer:
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`41. While the above screen is shown to consumers briefly at the end of the “Free,
`Free, Free, Free” commercials, an announcer says: “That’s right, TurboTax Free Edition is free.
`See details at turbotax.com.” The announcer does not read the fine print disclaimer stating:
`“TurboTax Free Edition is for simple U.S. returns only.”
`Given this advertising, reasonable consumers may believe that the TurboTax
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`products and services Intuit advertises as free are free for them—that they can file their taxes for
`free using TurboTax. In addition, at least one of TurboTax’s competitors, Cash App Taxes
`(formerly Credit Karma Tax), has offered a truly free online tax preparation and filing service to
`all consumers for five years. Further, online products and services in many industries are
`routinely offered to consumers completely free of charge, leading consumers to understand that
`online tax preparation products and services are often truly free.
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 10 of 31
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`III. Website Practices
`Intuit’s TurboTax Home Page Misleads Consumers into Believing They Can
`A.
`File Their Taxes for Free Using TurboTax
`The TurboTax website does not disclose adequately to consumers, including those
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`who see Intuit’s advertisements, the limitations on eligibility for the “freemium” version of
`TurboTax.
`For example, for TY 2018, the TurboTax home page contained the following
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`screen, which mimicked the “Free, Free, Free, Free” ad campaign:
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`The screen above, shown to consumers filing tax returns for TY 2018, failed to
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`disclose adequately the limitations on eligibility for at least three reasons:
`First, the limitations on eligibility were preceded by the words “FREE,
`a)
`guaranteed.” Intuit employees responsible for overseeing the marketing
`and marketing strategy for the “freemium” version of TurboTax included
`“guaranteed” to
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`c)
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`b)
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`Second, the disclosure language stated that consumers could file their
`“simple tax returns for FREE,” but no guidance was given about the
`meaning of “simple tax return” on that screen. In a significant example,
`Intuit would not have considered consumers receiving income reported on
`certain types of IRS Form 1099 as having a “simple tax return.” This
`includes consumers receiving independent contractor or small business
`income, such as consumers working in the gig economy by, for example,
`providing rideshare services or delivering groceries.
`Third, the eligibility requirement disclosures were hidden behind a
`hyperlink over the words “See why it’s free.” Consumers had to click on
`the hyperlink to trigger a pop up explaining the limitations.
`Consumers who clicked on the orange button saying “File for $0” on the screen
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`above were brought to a login screen to commence an online, automated “interview” to begin
`entering information to file their taxes. Consumers who were not eligible for the “freemium”
`version of TurboTax would not learn they were ineligible until they had already invested
`significant time and effort creating an account and inputting their sensitive personal and financial
`information into TurboTax.
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`(continues on next page)
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 12 of 31
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`For TY 2019, Intuit used a similar screen, pictured below, with an even greater
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`emphasis that consumers were “guaranteed” to file their taxes for free. Again, consumers who
`were not eligible for the “freemium” version of TurboTax would not learn they were ineligible
`until they had already invested significant time and effort creating an account and inputting their
`sensitive personal and financial information into TurboTax.
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`Since TY 2020, Intuit has continued to employ a customer interview model in
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`which consumers who are not eligible for the “freemium” version of TurboTax do not learn they
`are ineligible until they have already invested significant time and effort creating an account and
`inputting their sensitive personal and financial information into TurboTax.
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`(continues on next page)
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 13 of 31
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`The screen Intuit currently uses on its website, for TY 2021, is pictured below.
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`Once again, Intuit’s current website page emphasizes “FREE,” “$0,” and “File for
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`$0” at the top of the page, when in numerous instances Intuit does not permit consumers to file
`their taxes for free using TurboTax. While “Simple tax returns only” is hyperlinked to more
`detailed terms and conditions, the term “simple tax returns” is not understood by many
`consumers, and consumers who assume they have a “simple tax return” are not likely to click to
`read more.
`Thus, Intuit continues to bombard consumers with the message that they can file
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`their taxes for “free.” Intuit baits consumers with deceptive ads and then compound the
`deception with more false claims and buried disclosures.
`The TurboTax Interview Process Uses Required Upgrades Called “Hard
`B.
`Stops” to Induce Consumers to Upgrade from Free to Paid Versions of
`TurboTax
`Intuit has represented, and currently represents, to consumers who are not eligible
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`for the “freemium” version of TurboTax that they must pay Intuit to file their tax returns online
`with TurboTax. Intuit informed consumers of these required upgrades using screens its
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 14 of 31
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`employees call “Hard Stops.” Consumers are later required to pay for the upgraded version of
`TurboTax, either by providing payment information or agreeing to an additional charge to pay
`using their tax refund after their returns have been prepared and are ready to file.
`53. When consumers use the “freemium” version of TurboTax, it asks them a series of
`questions on successive webpages about their financial situation. These questions enable Intuit to
`determine whether consumers are eligible for the “freemium” version of TurboTax and include,
`among other things, whether the consumer paid student loan interest or was self-employed.
`Next, consumers are prompted to input their income by category. When
`54.
`consumers indicate that they need to report income on certain types of IRS Form 1099 (which
`could be because entities that paid them classified them as independent contractors, such as
`consumers working in the gig economy by, for example, providing rideshare services or
`delivering groceries), the “freemium” version of TurboTax displays a Hard Stop informing them
`that they cannot proceed for free. For example, Intuit’s TY 2019 “Business Income Upgrade”
`Hard Stop, depicted below, told consumers: “To accurately report this income, you’ll need to
`upgrade.” Hard Stop screens then offer consumers the option to upgrade and pay for a paid
`version of TurboTax, such as TurboTax Deluxe or TurboTax Self-Employed. At various times
`during TY 2018 and 2017, Intuit charged $59.99 for TurboTax Deluxe and $119.99 for TurboTax
`Self-Employed.
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`(continues on next page)
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`Complaint for TRO and PI
`No. 5:22-cv-1973
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 15 of 31
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`The headline in the Business Income Hard Stop states that consumers must
`55.
`upgrade to a paid version of TurboTax to “accurately report this income.”
`56.
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`The chart in the Business Income Hard Stop depicted above included a button that
`57.
`said “keep free” below the column for TurboTax Free Edition, even though the consumer could
`not actually continue using TurboTax Free Edition and report all of their income to the IRS.
`Indeed, consumers who clicked on the keep free button were shown what Intuit calls its “Are you
`sure,” or “AYS” screen, depicted below.
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`Complaint for TRO and PI
`No. 5:22-cv-1973
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 16 of 31
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`The Are You Sure screen again used the headline: “You need Deluxe or Self-
`58.
`Employed to accurately report your business income because Free Edition doesn’t cover your
`situation.”
`Consumers who clicked the “I don’t have this income” button on the Are You
`59.
`Sure screen were prompted to re-enter their income. Consumers who again entered the same
`Form 1099 income were again shown the Business Income Hard Stop; in TY 2018 and prior,
`when those same consumers again clicked “Keep Free” the second time they encountered it, they
`would have again been shown the Are You Sure screen, placing those consumers into a feedback
`loop that ended only if they upgraded to a paid version of TurboTax or chose not to report that
`Form 1099 income.
`A current Hard Stop, depicted below, tells consumers: “To accurately report this
`60.
`income, you’ll need to upgrade.” The Hard Stop screen offer consumers the option to upgrade
`and pay up to $59.99 for TurboTax Deluxe and up to $119 for TurboTax Self-Employed at full
`price (though discounts may be available, as in the case below).
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`Complaint for TRO and PI
`No. 5:22-cv-1973
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 17 of 31
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`Intuit has used and is using many other Hard Stops to induce consumers who start
`61.
`in the “freemium” version of TurboTax to upgrade to a paid version based on certain types of
`income, such as income from a farm, farm rental or farm equipment; selling a home; a prior year
`state tax refund; or investments.
`Intuit also has used and is using Hard Stops to induce consumers who start in the
`62.
`“freemium” version of TurboTax to upgrade to a paid version when seeking certain tax credits or
`deductions. An example that was in place during at least TY 2018 and TY 2019 was a deduction
`for paying student loan interest.
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`Complaint for TRO and PI
`No. 5:22-cv-1973
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 18 of 31
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`Thus, Intuit’s deceptive door-opener ads described above bring consumers to the
`64.
`TurboTax website representing that consumers can file their taxes for free using TurboTax, but
`once there, many consumers encounter screens that inform them that they cannot complete and
`file their taxes for free.
`In the case of the Hard Stop screens, this confrontation comes after consumers
`65.
`have already created a TurboTax account and expended substantial time inputting sensitive
`personal and financial information into Intuit’s user interface.
`Intuit’s Truly Free Version of TurboTax: The Free File Version
`IV.
`Intuit’s advertisements funneled consumers to the purportedly-free version of
`66.
`TurboTax, only to require
` upgrade and pay Intuit to file their taxes after consumers
`had invested time and shared sensitive information with Intuit.
`All the while, many low- and middle-income consumers that paid Intuit to
`67.
`upgrade to a paid version of TurboTax would have been eligible to prepare and file their taxes
`electronically at no cost through the IRS Free File Program, a public-private partnership formed
`in 2002 between the IRS and a consortium of online tax preparation and filing companies,
`formerly including Intuit, pursuant to a Memorandum of Understanding (“MOU”).
`68.
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`Until 2021, when Intuit left the IRS Free File Program, the Free File version of
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`TurboTax provided an online solution for all IRS tax forms, regardless of consumers’ sources or
`types of income or the variety of their deductions or tax credits, so long as consumers fell within
`the prescribed adjusted gross income threshold that Intuit set each year. The only other version of
`TurboTax that would have provided equal coverage for all tax situations and tax forms is its most
`expensive paid version of TurboTax, TurboTax Self Employed.
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`Complaint for TRO and PI
`No. 5:22-cv-1973
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 19 of 31
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`The IRS Free File Program
`A.
`Under the IRS Free File Program MOU, participating companies offer free online
`70.
`tax preparation services to low- and middle-income Americans. Participating companies are
`prohibited from marketing to consumers while those consumers use their Free File offerings. In
`exchange, the IRS agreed not to compete with the participating companies in providing free,
`online tax return preparation and filing services to consumers. In a December 2019 addendum to
`the most recent MOU concerning the program, the IRS dropped its agreement to refrain from
`competing with the private providers; however, there is no current indication that the IRS intends
`to enter the market.
`Historically, consumer participation in the IRS Free File Program has been low. In
`71.
`2018, approximately three million of the nearly 104 million consumers who were eligible to do
`so used the IRS Free File Program to file their federal taxes. At its peak usage in 2005, 5,142,125
`consumers used the IRS Free File Program to file their federal taxes.
`The IRS has set eligibility thresholds for participation in the Free File Program
`72.
`based on consumers’ adjusted gross income (“AGI”). Consumers with an AGI equal to or less
`than 70% of the U.S. consumer population are meant to be eligible for the program. The MOU,
`however, requires that no company make its Free File offering available to more than 50%, or
`less than 10%, of eligible consumers. Each company is free to set its own eligibility requirements
`to stay within that range.
`The Free File Version of TurboTax
`B.
`73.
`From 2003 to October 2021, Intuit offered the Free File version of TurboTax as
`part of the IRS Free File Program.
`Intuit employees involved in marketing and strategy related to offering the
`74.
`“freemium” and Free File versions of TurboTax acknowledged that these two versions of
`TurboTax competed with each other.
`From 2017 (for TY 2016) to 2021 (for TY 2020), Intuit made the Free File version
`75.
`of TurboTax available to all consumers who were eligible for the earned income tax credit.
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`No. 5:22-cv-1973
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`Case 5:22-cv-01973-EJD Document 1 Filed 03/28/22 Page 20 of 31
`Case 5:22-cv-01973-EJD Document1 Filed 03/28/22 Page 20 of 31
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`76.
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`From 2017 to 2021, Intuit also made the Free File version of TurboTax available
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`to all consumers with an AGIthat did not exceed specified AGI thresholds:
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`Tax Year
`
`Maximum AGI
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`2016 (returns filed in 2017)
`2017 (returns filed in 2018)
`2018 (returns filed in 2019)
`2019 (returns filed in 2020)
`2020 (returns filed in 2021)
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`$33,000
`$33,000
`$34,000
`$36,000
`$39.000
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`77.
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`From 2017 to 2021, Intuit also made the Free File version of TurboTax available
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`to all active duty military service members with an AGIthat did not exceed specified AGI
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`thresholds:
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`Tax Year
`2016 (returns filed in 2017)
`2017 (returns filed in 2018)
`2018 (returns filed in 2019)
`2019 (returns filed in 2020)
`2020 (returns filed in 2021)
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`Maximum AGI
`$64,000
`$66,000
`$66,000
`$69,000
`$72.000
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`(These limits were the maximum AGIs allowable in the IRS Free File Program for any consumer
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`using any participating company for those years.)
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`78.
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`Although consumers primarily accessed the Free File version of TurboTax via
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`IRS.gov, they havealso accessedit directly via Intuit’s internet landing page for the Free File
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`version of TurboTax, whichis different from the landing page forits “freemium”and paid
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`versions of TurboTax.
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`79.
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`Intuit changed the name of