Attorney General Rutledge secures $141 million for American consumers deceived by Intuit’s Turbotax
LITTLE ROCK – Attorney General Leslie Rutledge secured a settlement with the owner of Turbotax, Intuit Inc. ( Intuit), for deceiving consumers in to paying for tax services that should have been free.
As a result of a multistate agreement, Intuit will pay $ 141 million in restitution to millions of consumers across the nation who were unfairly charged. In addition, Intuit must suspend Turbotax’s “free, free, free” ad campaign that lured customers with promises of free tax preparation services, only to deceive them into paying for those services. All 50 states and the District of Columbia have signed onto the agreement. Almost 36,000 Arkansas consumers will share the $ 1.067 million in restitution payments.
“Intuit deliberately deceived consumers in to paying for their Turbo Tax service that was actually supposed to be free,” said Attorney General Rutledge. “Intuit profited from its lies to Arkansans, and now with this settlement, Intuit will pay over $ 1 million to Arkansans for its fraud.”
A multistate investigation found that Intuit engaged in several deceptive and unfair trade practices that limited consumers’ participation in the IRS Free File Program. The company used confusingly similar names for both its IRS Free File product and its commercial “freemium” product. Intuit bid on paid search advertisements to direct consumers who were looking for the IRS Free File product to the Turbotax “freemium” product instead. Intuit also purposefully blocked its IRS Free File landing page from search engine results during the 2019 tax filing season, effectively shutting out eligible taxpayers from filing their taxes for free.
Under the agreement, Intuit will provide restitution to millions of consumers. Consumers are expected to receive a direct payment of approximately $ 30 for each year that they were deceived into paying for filing services. Impacted consumers will automatically receive notices and a check by mail.
Intuit has also agreed to reform its business practices, including:
Refraining from making misrepresentations in connection with promoting or offering any online tax preparation products;
Enhancing disclosures in its advertising and marketing of free products;
Designing its products to better inform users whether they will be eligible to file their taxes for free; and
Refraining from requiring consumers to start their tax filing over if they exit one of Intuit’s paid products to use a free product instead.
Intuit withdrew from the IRS Free File program in July 2021.
New York and Tennessee led the multistate investigation with support from the attorneys general of Florida, Illinois, New Jersey, North Carolina, Pennsylvania, Texas, and Washington.
All 50 states and the District of Columbia joined this agreement.
NOTICE FOR AMENDMENTS REFERRED TO THE PEOPLE BY THE ARKANSAS GENERAL ASSEMBLY Issue No. 2 NOTICE TO THE PUBLIC
Pursuant to Article 19, Section 22, of the Arkansas Constitution, the 93rd General Assembly refers the following constitutional amendment to a vote of the people on November 8, 2022, and will appear on the ballot as Issue No. 2. Each elector upon voting his/her ballot shall vote for or against this amendment. Underlined language would be added to the present Constitution. Stricken language would be deleted from the present Constitution. This amendment was proposed in the Regular 2021 Session by Representative Ray and filed as HJR 1005.
ISSUE NO. 2 Popular Name
A Constitutional Amendment to Reform Certain Measures Presented to Voters, to be Known as the “Constitutional Amendment and Ballot Initiative Reform Amendment”
Ballot Title
AN AMENDMENT TO THE ARKANSAS CONSTITUTION, TO BE KNOWN AS THE “CONSTITUTIONAL AMENDMENT AND BALLOT INITIATIVE REFORM AMENDMENT”, CONCERNING THE NUMBER OF VOTES REQUIRED FOR APPROVAL OF CERTAIN MEASURES PRESENTED TO VOTERS; REQUIRING THAT INITIATIVES PROPOSED UNDER ARKANSAS CONSTITUTION, ARTICLE 5,
§ 1, AND CONSTITUTIONAL AMENDMENTS PROPOSED UNDER ARKANSAS CONSTITUTION, ARTICLE 19, § 22, AND ARKANSAS CONSTITUTION, AMENDMENT 70, § 2, SHALL BE APPROVED WHEN RECEIVING AT LEAST SIXTY PERCENT (60%) OF THE VOTES CAST ON THE PROPOSED INITIATIVE OR PROPOSED CONSTITUTIONAL AMENDMENT; AND REQUIRING THAT A MEASURE SUBJECT TO A REFERENDUM SHALL BE REPEALED IF THE MEASURE IS REJECTED BY A MAJORITY OF THE ELECTORS VOTING UPON THE MATTER.
BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-THIRD GENERAL ASSEMBLY OF THE STATE OF ARKANSAS, AND BY THE SENATE, A MAJORITY OF ALL MEMBERS ELECTED TO EACH HOUSE AGREEING THERETO:
THAT the following is proposed as an amendment to the Constitution of the State of Arkansas, and upon being submitted to the electors of the state for approval or rejection at the next general election for Representatives and Senators, if a majority of the electors voting thereon at the election adopt the amendment, the amendment shall become a part of the Constitution of the State of Arkansas, to wit: SECTION 1. TITLE. This amendment shall be known and may be cited as the “Constitutional Amendment and Ballot Initiative Reform Amendment”.
SECTION 2. The subsection of Arkansas Constitution, Article 5, § 1, titled “Majority”, is amended to read as follows:
Majority Approval. Any measure submitted to the people as herein provided shall take effect and become a law when approved by a majority at least sixty percent (60%) of the votes cast upon such measure, and not otherwise, and shall not be required to receive a majority of the electors voting at such election. Such measures shall be operative on and after the thirtieth day after the election at which it is approved, unless otherwise specified in the Act measure. However, a measure subject to a referendum shall be repealed if it is rejected by a majority of the electors voting upon the matter. This section shall not be construed to deprive any member of the General Assembly of the right to introduce any measure, but no measure shall be submitted to the people by the General Assembly, except a proposed constitutional amendment or amendments as provided for in this Constitution.
SECTION 3. The subsection of Arkansas Constitution, Article 5, § 1, titled “Conflicting Measures”, is amended to read as follows: Conflicting Measures. If conflicting measures initiated or referred to the people shall be approved by a majority at least sixty percent (60%) of the votes severally cast for and against the same at the same election, the one receiving the highest number of affirmative votes shall become law.
SECTION 4. Arkansas Constitution, Article 19, § 22, is amended to read as follows:
§ 22. Constitutional amendments.
Either branch of the General Assembly, at a regular session thereof, may propose amendments to this Constitution; and if the same be agreed to by a majority of all members elected to each house, such proposed amendments shall be entered on the journals with the yeas and nays, and published in at least one newspaper in each county, where a newspaper is published, for six months immediately preceding the next general election for Senators and Representatives, at which time the same shall be submitted to the electors of the State, for approval or rejection; and if a majority at least sixty percent (60%) of the electors voting at such election adopt such amendments, the same shall become a part of this Constitution. But no more than three amendments shall be proposed or submitted at the same time. They shall be so submitted as to enable the electors to vote on each amendment separately.
SECTION 5. Arkansas Constitution, Amendment 70, § 2, is amended to read as follows:
§ 2. Additional Constitutional amendments authorized.
In addition to the three amendments to the Constitution allowed pursuant to Article 19, § 22, either branch of the General Assembly at a regular session thereof may propose an amendment to the Constitution to change the salaries for the offices of Governor, Lieutenant Governor, Attorney General, Secretary of State, Treasurer of State, Commissioner of State Lands, and Auditor of State and for members of the General Assembly. If the same be agreed to by a majority of all members elected to each house, such proposed amendment shall be entered on the journals with the yeas and nays, and published in at least one newspaper in each county, where a newspaper is published, for six months immediately preceding the next general election for Senators and Representatives, at which time the same shall be submitted to the electors of the State for approval or rejection. If a majority at least sixty percent (60%) of the electors voting at such election adopt the amendment the same shall become a part of this Constitution. Only one amendment to the Constitution may be referred pursuant to this section.
SECTION 6. EFFECTIVE DATE. This amendment shall be effective on and after January 1, 2023.
IN WITNESS WHEREOF I HAVE HEREUNTO SET MY HAND AND FIXED THE OFFICIAL SEAL OF THE OFFICE OF THE SECRETARY OF STATE ON THIS 8TH DAY OF MAY 2022.