H&R Block Settles FTC Lawsuit for $7 Million

H&R Block has agreed to pay $7 million to settle allegations from the Federal Trade Commission (FTC) that it misled consumers about its 'free' tax filing services. The settlement requires H&R Block to clearly disclose the percentage of taxpayers eligible for free filing and to stop requiring customers to contact customer service when downgrading to cheaper products. Additionally, the company must cease the practice of deleting previously entered tax data when customers switch to less expensive options. The FTC's lawsuit, filed in February 2024, highlighted that many consumers were unable to file for free despite the company's advertising claims. H&R Block asserts that it provides fair pricing and will continue to work with the FTC on these changes. The settlement aims to alleviate confusion and stress for taxpayers during tax season.