Penalty Amount
$141,000,000
Consumers Affected
40,841
Connecticut Attorney General William Tong secured $1.2 million in restitution for 40,841 state consumers as part of a multistate $141 million settlement with Intuit Inc., the owner of TurboTax. The settlement resolves allegations that Intuit deceived low-income consumers into paying for tax preparation services that were offered for free through the IRS Free File program by using deceptive marketing tactics and confusing product names. Intuit must pay restitution, suspend its 'free, free, free' ad campaign, and implement business practice reforms.
Intuit must pay $141 million in restitution nationwide, including $1.2 million to Connecticut consumers, with affected individuals receiving approximately $29.64 per year deceived. The company must cease misrepresentations in advertising, enhance disclosures for free products, improve product design to inform users of free eligibility, and refrain from forcing consumers to restart filings when switching to free products.
In-house legal teams should review customer service agreements and terms of service for tax preparation software (e.g., TurboTax) and similar financial products. Focus on clauses governing marketing representations, pricing and fee disclosures, product/service tier definitions, and any guarantees related to 'free' offerings. Specific attention is needed on how product names and promotional materials are described contractually versus how they are advertised. Changes may be required to ensure clarity between 'free' IRS-sponsored options (like Free File) and paid products, revise pricing tables to eliminate ambiguity, and implement compliance mechanisms to prevent misleading advertising claims as mandated by the settlement's suspension of the 'free, free, free' campaign.
Entity
Intuit Inc.
Also known as: Intuit
Industry
TechnologyOfficial Press Release
https://portal.ct.gov/ag/press-releases/2022-press-releases/ag-tong-secures-restitution-for-connecticut-consumers-deceived-by-turbotax
final assurance intuit and nyag execution.pdf?rev=580985b6e7
https://portal.ct.gov/-/media/ag/press_releases/2022/final-assurance-intuit-and-nyag-execution.pdf?rev=580985b6e7ef4c939d9c01fae9130b53&hash=1A61AA3998B11420AFFBB7BDB4EFC19A
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
$2.0M
Attorney General Tong and a coalition of four other states and the FTC sued Zillow and Redfin after Zillow paid Redfin $100 million to shut down its multifamily rental advertising business and transfer clients to Zillow. The settlement requires the companies to restore competition, with Redfin rebuilding its apartment advertising business, and pay $2 million to the coalition.
Attorney General William Tong sent a letter to the Connecticut Insurance Department urging rejection of double-digit rate increases sought by Anthem, ConnectiCare, and UnitedHealthcare for individual and small group health insurance plans covering about 220,000 people. The letter argues the rates exceed inflationary measures and criticizes the carriers for failing to control costs and for poor claims system management, particularly ConnectiCare's transition to Molina Healthcare.
$275K
Connecticut Attorney General William Tong announced a $275,000 settlement with TaxAct, an online tax preparation company, over allegations that between January 2018 and December 2022, TaxAct improperly disclosed detailed customer financial information to Meta and Google through third-party tracking technologies without notifying taxpayers. The settlement requires TaxAct to pay $275,000 and implement new third-party tracking compliance measures, including a review committee, written policies, a tag monitoring system, and two independent third-party audits.
$4.0M
Connecticut Attorney General William Tong and the Federal Trade Commission announced a $4 million settlement with Manchester City Nissan (Chase Nissan LLC) resolving allegations that the dealership double-charged for 'certified pre-owned' vehicles and collected unauthorized junk fees. The settlement requires payment for consumer redress, prohibits misrepresentations, mandates clear disclosure of the maximum total price, and requires express informed consent for all charges.
Attorney General Tong and a coalition of 21 attorneys general and Pennsylvania filed lawsuits against the U.S. Department of Transportation, FMCSA, and DHS to block demands for the personal information of 17 million CDL drivers. The lawsuits allege violations of federal privacy laws and the Administrative Procedure Act, and seek an emergency order to prevent the data transfer.
Attorney General William Tong and a coalition of 10 attorneys general filed a lawsuit challenging a new OCC rule that preempts state laws requiring national banks to pay interest on homeowners' mortgage escrow accounts. The lawsuit argues the OCC ignored federal court decisions and bypassed safeguards, and seeks to block the rule.