The Federal Trade Commission (FTC) is suing H&R Block over alleged deceptive marketing and inappropriate removal of customer tax data. Customers were persuaded to purchase a ‘Free Online’ tax filing service that was often not truly free due to hidden costs. The accusations also include H&R Block making transfers to more affordable online services difficult for their clients.
Concerns regarding H&R Block arose initially from customer complaints accusing the company of creating barriers to switching services. Clients argue that the company fails to provide clear instructions needed for a smooth transition, a tactic seemingly aimed at maintaining their clientele while undermining cheaper competitors.
The FTC argues these actions by H&R Block caused significant financial strain on consumers and are a misuse of power. Consequently, the agency is demanding a cease in these practices, seeking compensation for affected consumers and holding corporations accountable for any harmful actions towards consumers. Stringent investigation by the FTC is ongoing.
Further criticism surrounds H&R Block’s online tax filing services which allegedly steer clients towards costlier options. Consumers are calling for more transparency in pricing and product presentation to improve service quality.
Additionally, accusations of alleged barriers set by the company to consumers wanting to switch to more affordable options have set off alarms. Notably, customers reportedly lose all their previously entered tax data when downgrading their services, an issue not encountered during an upgrade.
The FTC has also accused H&R Block of deceptive promotional tactics, advertising free services that most clients find unusable. Supported by the Democrat-led commission, these charges will soon be heard before the FTC’s administrative law judge.
In response, H&R Block’s legal representative, Dara Redler, defended the company’s tax expertise and transparent pricing. Notably, she side-stepped confronting the FTC’s allegations directly, resulting in critics arguing that an actual commitment to reviewing their pricing or practices was absent in her response.
