“He or she might not realize the notice contained a second hyperlink.” “A reasonable user might well find this arrangement confounding,” Judge Breyer’s opinion said.
Links that appeared on both pages bound customers clicking on “sign in” or “continue” to TurboTax’s Terms of Use - and those terms contained the arbitration clause at issue. He also said the notice that appeared on the Intuit sign-in and account recovery pages contained several similar hyperlinks that could cause confusion. In his order, Judge Breyer said the Intuit TurboTax terms of service were not adequate to inform consumers they were giving consent to be bound by arbitration when signing into TurboTax.Īccording to Judge Breyer, the hyperlink to the terms and conditions on the Intuit TurboTax website was displayed in blue but was not underlined, and therefore did not meet the “gold standard” of how terms and conditions should be displayed to website users. In late October 2019, Intuit moved to send the case to arbitration, but that motion was denied by Judge Breyer on March 12, 2020. That consolidated complaint accused Intuit of violating the California Unfair Competition Law and of unjust enrichment. 13, 2019, according to the settlement agreement.
The TurboTax class action lawsuits were consolidated in federal court in June 2019, and the plaintiffs filed their amended complaint Sept. The class action lawsuits alleged Intuit deceived the plaintiffs into paying fees for filing their tax returns because the company either didn’t make them aware of software Intuit donates to the Internal Revenue Service’s (IRS) Free File Program or were led to believe they didn’t qualify for a free TurboTax product when they were told they were not eligible for the free TurboTax commercial product. Attorneys’ fees and other costs will be paid from this amount the total will not exceed 25% of the $40 million.Īccording to the TurboTax class action lawsuit settlement agreement, plaintiffs filed 10 separate class action lawsuits beginning in May 2019. In addition to these nonmonetary benefits, Intuit will pay $40 million into an escrow account, according to the settlement. In the event Intuit fails to comply, the plaintiffs have agreed to give the company written notice of that alleged failure, at which point Intuit will have 45 days to come into compliance.Ĭlass Members in the TurboTax class action lawsuit settlement will be eligible to file their taxes using the IRS Free File Program for free in 2021, the settlement agreement says.
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