A proposed Federal Trade Commission (FTC) settlement would require H&R Block to make multiple changes for the 2025 tax filing season as well as long-term changes.
In February, the FTC filed an administrative lawsuit against H&R Block, alleging the company deceptively advertised that its online tax filing products were free. The lawsuit also alleged that
H&R Block required consumers contact customer service to downgrade to a cheaper H&R Block product and deleted users’ previously entered data.
“American taxpayers who seek tax-filing help should be able to choose the services they need—and know the truth about how much they’ll pay,” Samuel Levine, FTC Bureau of Consumer Protection director, said. “The FTC’s action today will help lower the stress and expense of tax season for millions of taxpayers.”
Under the proposed settlement, H&R Block would be required to pay the FTC $7 million and would be required to disclose in advertising either that the majority of taxpayers do not qualify to use any “free” products or the percentage of taxpayers who are eligible.
The company would be required to allow products to be downgraded without contacting customer service by Feb. 15 and to stop by the 2026 tax filing season deleting consumers’ previously entered information.