FTC judge rules that Intuit engaged in 'deceptive advertising' (updated)
The Federal Trade Commission's chief administrative law judge, in an initial decision released on Friday, ruled that Intuit (NASDAQ:INTU) "engaged in deceptive advertising" by promoting "free" tax products and services for which many consumers were ineligible.
The judge also issued a cease-and-desist order to the company that offers TurboTax software and services, saying there's a "cognizant danger of a recurring violation." The order can be appealed to the full commission.

Under the order, Intuit (INTU) is barred from representing any service or product as free unless it's free for all consumers; clearly discloses any terms that would limit the offer; and, if the product isn't free to a majority of U.S. taxpayers, that must be disclosed in a clear and conspicuous manner, the FTC said.

Update at 12:51 PM ET: "Intuit will appeal this seemingly predetermined decision by the FTC to unsurprisingly rule in its own favor and we are confident that when the matter ultimately returns to a neutral body Intuit will prevail, as it has previously in this matter," an Intuit spokesperson said in an email to Seeking Alpha. The company also pointed out that the FTC has ruled in its own favor in "nearly every consumer protection case in the last 20 years.


There's no monetary penalty, and Intuit (INTU) doesn't expect the decision to have any significant impact on its business.
Politico first reported the ruling last Friday.

Intuit (INTU) stock edged down 0.1% in midday trading.


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