Following a class action lawsuit filed in February 2012, Intuit Inc. has agreed to pay up to $6.55 million to consumers who claimed that they were charged deceptive fees when using TurboTax Online. The plaintiffs alleged that the TurboTax Online “Free Edition” was deceptively named and required additional fees (usually $19.95) to file a state tax return; instead, Intuit carefully hid its “Freedom Edition” which is actually the service that provides free e-filing for federal and state returns. The plaintiffs also allege that Intuit failed to disclose the fee for the Refund Processing Service as a finance charge and failed to disclose the Annual Percentage Rate (“APR”) for deferring payment so that it could be taken out of users’ tax refunds. The plaintiffs claimed that Intuit violated the Truth in Lending Act (more commonly known as TILA) as well as California business and usury laws. The case is Smith, et al v. Intuit, Inc., Case No. 12-cv-00222, U.S. District Court, Northern District of California.
Included in the settlement class are all Intuit customers in the U.S. who used TurboTax Online and the Refund Processing Service from January 12, 2008 through May 28, 2013. Class members who submit a valid claim form will receive a partial refund. Actual payments depend upon the number of valid claims filed. The only way to receive a cash award from this settlement is to submit a valid Claim Form online at www.turbotaxclassaction.com or mail the Claim Form to the Settlement Administration on or before October 28, 2013.