The FTC brought administrative proceedings against tax preparation company H&R Block, arguing that the company had made deceptive statements about its “free filing” products. H&R Block brought an action in federal district court seeking to enjoin the administrative proceedings, challenging the FTC’s structure.
Yesterday, the FTC announced the parties had reached a settlement of the case, the proposed settlement requires H&R Block to pay $7 million in penalties, as well as changes to the companies’ practices.
The Commission voted 5-0 to approve the proposed statement, though the two Republican-appointed Commissioners expressed doubt as to whether they would vote for final approval– an issue to watch given the upcoming change in administration.
