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Intuit Wins Big In FTC Fight Over TurboTax “Free” Ads

26 0
27.03.2026

A federal appeals court has handed Intuit a significant procedural win in its long-running fight with the Federal Trade Commission (FTC) that could ripple beyond TurboTax and reshape how the agency brings enforcement actions.

In a judgment issued March 20, 2026, the U.S. Court of Appeals for the Fifth Circuit granted Intuit’s petition for review, vacated the FTC’s decision, and remanded the case for further proceedings.

Importantly, the ruling does not resolve whether Intuit’s advertising was misleading. Instead, it zeroes in on a threshold question that is increasingly front and center in administrative law: whether the FTC can adjudicate the dispute in its own administrative forum.

The Fifth Circuit’s answer was no.

The case stems from FTC allegations that Intuit misled consumers by marketing TurboTax as “free” when many taxpayers did not qualify for the no-cost product. According to the agency, the advertising suggested broad eligibility for free filing, even though millions of taxpayers—particularly gig workers and those with more complex returns—would ultimately be required to upgrade to paid versions.

Rather than filing its case in federal court, the FTC pursued those claims through its in-house administrative process. After a trial before an administrative law judge, the agency issued a sweeping cease-and-desist order governing Intuit’s marketing practices.

Intuit challenged that process, arguing that the Constitution requires claims like these to be heard in federal court rather than by an agency acting as both prosecutor and adjudicator.

The Fifth Circuit agreed.

An Intuit spokesperson directed Forbes to a blog post that says, in part, “We’re delighted with the ruling from the U.S. Court of Appeals for the Fifth Circuit which vacated the FTC’s order and held that the FTC’s adjudication of its claims, relating to Intuit’s advertising of........

© Forbes