H&R Block claims TurboTax ad is misleading
Kansas City, Mo. ? H&R Block Inc. claims in a federal lawsuit that the maker of the popular competitor tax-preparation software TurboTax made misleading statements in a new $25 million advertising campaign.
The suit, which was filed Friday in U.S. District Court in Kansas City, seeks to put a stop to radio and television ads that have been airing nationwide since Monday. It also seeks unspecified actual and punitive damages for false advertising and unfair competition.
Intuit Inc., based in Mountain View, Calif., also makes the personal finance software Quicken. The company did not immediately respond to an online request by The Associated Press seeking comment.
Kansas City-based H&R Block, which makes the tax preparation software TaxCut, alleges that Intuit falsely stated in the television ad that “more returns were prepared with TurboTax last year than at all the H&R Block stores combined.”
H&R Block said the more than 26 million returns its stores prepared last year far exceeds the 21 million prepared with TurboTax.
H&R Block also had problems with this statement made in the ad campaign, “TurboTax asks me questions just like H&R Block does.”
“This language is false, deceptive and misleading to consumers, as it implies that pre-programmed prompts from the TurboTax computer program are ‘just like’ the interaction with an H&R Block tax professional, each of whom have more than sixty hours of tax preparation training and who can interact with and respond to … specific questions from each consumer,” the lawsuit said. “The personalized customer attention that H&R Block customers enjoy is not duplicated by Turbo Tax’s software.”
Block alleges that Intuit ignored a cease and desist letter calling for it to stop the advertisements.
One day before Kansas City-based Block filed suit, Intuit sought a declaration that its advertisements do not violate state or federal law. Then, the company on Friday immediately asked the federal court in Kansas City to dismiss H&R Block’s action or to transfer it to California.







