H&R Block Settles $7 Million FTC Lawsuit Over Misleading “Free” Tax Filing Claims
H&R Block, one of the nation’s largest tax preparation companies, has agreed to pay $7 million to settle a lawsuit brought by the Federal Trade Commission (FTC) over deceptive advertising practices. The settlement, which will affect the 2025 tax season, also mandates significant changes to the company’s online tax filing services.
False “Free” Tax Filing Advertising
The FTC alleged that H&R Block falsely advertised “free” tax filing, even though the majority of users could not actually file for free. Additionally, many consumers faced obstacles when attempting to downgrade to more affordable products. This often required contacting customer service and, in some cases, resulted in the deletion of previously entered tax data.
Under the terms of the settlement, H&R Block must simplify its downgrading process, prohibit data deletion during downgrades, and ensure that customers can switch to less expensive options without needing assistance. By 2026, users will be able to downgrade without losing their saved information, allowing for a more seamless tax filing experience.
H&R Block May Be a Household Name But You Have Other Options
While H&R Block may be a household name, it’s worth remembering they are far from the only option for tax preparation services. San Antonio is home to many longstanding small businesses that specialize in personalized tax filing. These local firms often provide a level of attention and care that large corporations cannot match, ensuring every client feels valued.
As tax season approaches, prospective clients should carefully evaluate their options. Local tax preparers often offer competitive pricing, expert advice, and a commitment to serving the community. Don’t let big advertising campaigns mislead you—explore the trusted businesses in your neighborhood for a more tailored and honest experience.
$7 Million Payout- A Stark Reminder
H&R Block’s $7 million payout serves as a stark reminder to consumers to be vigilant and demand transparency. After all, your taxes—and your trust—deserve more than broken promises.
