FTC Accuses H&R Block of Misleading Advertising Practices
The Federal Trade Commission (FTC) has filed formal complaints against H&R Block. This comes on the heels of allegations stating the tax service provider’s engagement in misleading advertising practices and intentional deletion of customer data when attempting to switch to more affordable online platforms.
The FTC accuses H&R Block of creating a “labyrinth of tiresome hurdles”, designed to steer customers towards needless premium tax filing options. Furthermore, the commission claims the company shrouds its various offerings, leading customers to opt for more expensive services. Affected parties, according to the FTC, predominantly consist of low-to-middle income earners eligible for free tax services, but who ended up fashioning out funds for unnecessary features.
Samuel Levine, the FTC’s Bureau of Consumer Protection Director, warned that companies engaging in practices prejudicial to consumer welfare would have to face the FTC. In addition, the FTC alleges that H&R Block’s confusion-inducing tactics are hardly mentioned in client communication or promotional materials, making it hard for consumers to make informed decisions about their choice of service.
Increased scrutiny is set upon H&R Block with an increased consumer protection concern. The allegations have not been answered, and the company maintains an enduring commitment to offering maximum refunds and uncompromised support to its customers. However, the FTC remains adamant in its intention to protect consumer rights.
Further proceedings in this case will be similar to a lawsuit as the FTC’s decision to file such complaints often comes from perceived public interest violations and scrutiny of laws. A formal hearing involving all parties will be held before an FTC administrative law judge who will deliberate on the case’s merits and consider the evidence presented for a ruling. Additionally, an appeals process will be provided for a review of the decision by the full Commission.
The FTC remains vested in ensuring fairness in the competitive landscape and safeguarding consumer rights while reiterating the enduring value of transparency in the marketplace.
