FTC Finalizes $7 Million Settlement With H&R Block

The FTC says it has settled a $7 million settlement with the H&R Block.

The Federal Trade Commission (FTC) Office has partnered the settlement Wednesday (Jan. 8) as part of a larger agreement with the tax preparation company, which agreed to make a number of changes to its practices before the 2025 tax filing season .

The commission last year charged H&R Block with unfairly asking customers hoping to downgrade to a cheaper H&R Block product to contact customer service. The regulator also said the company unfairly deleted data previously entered by users and made fraudulent claims about “free” tax filing.

“The settlement requires H&R Block to make it easier for consumers to downgrade products and by eliminating its practice of completely deleting data previously entered by consumers to downgrade,” the FTC said. . “By February 15, 2025, the company must allow consumers to downgrade products using a chatbot or other automated means, instead of asking them to call customer service or chat with a you live customer service agent.”

In addition to paying the $7 million settlement, the agreement also requires H&R Block to stop completely deleting consumer information before the 2026 tax season. In addition, H&R Block must disclose “free” disclosures. it advertises either the percentage of taxpayers who are eligible to use the “free” products or that the majority of taxpayers do not qualify.

“H&R Block prides itself on providing consumers with quality online tax preparation products, which has never been an issue in this regard,” the company said in a statement provided to the PYMNTS when the the settlement was first announced in November.

“We will continue to work through this process with the Commission. We are proud of the value, unmatched tax expertise, and fair and transparent pricing we provide to our clients, who have trusted H&R Block for nearly 70 years .

Also this week, the FTC settled a complaint against a gig economy platform Angi Servicesneed it to pay $2.95 million and make “substantial” changes to its business practices.

“Handy Technologies relied on inflated and false earnings claims to attract workers to its platform,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a news release. “It then takes undisclosed fines and fees out of their paychecks.”

Reached by PYMNTS, a Handy spokesperson said the FTC’s allegations were unfair, but the company chose to settle to “put the matter to rest” and focus on its business.

“Although we are prepared to litigate, we have chosen to enter into an agreement with these parties to discontinue this matter and return our 100% focus on supporting our customers: the small businesses that helps Americans take care of and maintain their homes,” said the statement.