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US Appeals Court Tosses FTC Order Over Intuit’s “Free” TurboTax Ads

By  |  March 22, 2026

A U.S. appeals court on Friday set aside a Federal Trade Commission order that had barred Intuit from promoting TurboTax as “free” when many taxpayers did not qualify for the offer, according to Reuters.

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    In a unanimous 3-0 ruling, the 5th U.S. Circuit Court of Appeals in New Orleans found that allowing an FTC administrative law judge to decide deceptive advertising claims violated the constitutional separation of powers, according to Reuters. The decision marked a setback for the agency’s effort to restrict how Intuit markets its tax preparation products.

    The FTC’s order, issued in January 2024, had prohibited the TurboTax maker from advertising any service as free unless it was available at no cost to all consumers or unless the company clearly stated what share of taxpayers was eligible, according to Reuters. That order followed an earlier ruling by an administrative law judge.

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    Read more: FTC Wins Ruling Against TurboTax Maker Intuit for Deceptive Advertisements

    The agency had accused Intuit of misleading consumers over a six-year period by creating the impression that all TurboTax products were free. Per Reuters, the FTC said some advertisements described TurboTax as “free, free, free, free” and characterized the company’s conduct as “egregious.”

    Intuit, based in Mountain View, California, promoted its TurboTax Free Edition across multiple forms of media, though it typically said the product was free only for taxpayers filing “simple” returns, according to Reuters. Writing for the court, Circuit Judge Edith Jones said deceptive advertising cases of this kind must be brought in federal court, where the FTC could face a heavier burden of proof, per Reuters.

    Jones pointed to a 2024 U.S. Supreme Court ruling that limited the Securities and Exchange Commission’s use of in-house judges to enforce laws, according to Reuters. Still, the appeals court did not grant Intuit’s request to have the FTC matter thrown out entirely, instead sending the case back to the commission for further proceedings.

    The FTC did not immediately respond to requests for comment, according to Reuters. In a blog post, Intuit general counsel Kerry McLean said the FTC’s claims lacked merit and said the company has “always been clear, fair and transparent” with customers, per Reuters.

    Source: Reuters