The tax prep company was ordered to repay $7 million to customers, downgrade processes, and improve transparency.
The Federal Trade Commission (FTC) finalized a settlement requiring H&R Block to implement certain changes by the 2025 tax season, addressing allegations of unfair practices. The company must allow consumers to downgrade tax products through automated tools like chatbots, rather than forcing them to contact customer service, and eliminate the deletion of previously entered data during downgrades.
By 2026, H&R Block must also ensure that users who revert to a prior product can resume their filing at the same point they left off. The company will also be required to disclose eligibility limitations in its “free” tax filing advertisements, including the percentage of taxpayers who qualify.
As part of the settlement, H&R Block will pay $7 million to compensate customers impacted by deceptive practices. These practices, highlighted in a February 2024 complaint, included misleading claims about free tax services and burdensome downgrading processes. The FTC unanimously approved the settlement.
As the Lord Leads, Pray with Us…
- For FTC nominee Andrew Ferguson as he prepares to head the agency.
- For discernment for the members of the commission as they assess the business practices of large firms.
Sources: Federal Trade Commission
