The Federal Trade Commission (FTC) imposed a $7 million fine on tax-preparation giant H&R Block for what it describes as “unlawful practices,” including misleading claims about “free” tax-filing services and failures in customer support systems.
The FTC announced on Jan. 8 that it had finalized a settlement with H&R Block, which denies wrongdoing but has agreed to pay the fine and implement significant reforms. These include improving transparency in advertising, upgrading customer-service processes, and providing clearer pricing and product disclosures to ensure compliance with federal consumer protection laws.
The settlement stems from a lawsuit filed by the FTC in February 2024, in which the federal agency accused H&R Block of deceptive practices in advertising and customer service for its do-it-yourself online tax-filing products. The FTC alleged that H&R Block’s online tax products steer consumers into higher-cost options unnecessarily due to unclear explanations about which products cover specific tax forms or situations….