Federal Court Overturns FTC Ban on Intuit’s TurboTax ‘Free’ Ads

A federal appeals court has overturned a government ban that would have prevented tax software company Intuit from marketing its TurboTax service as “free” when many customers end up paying fees.

On Friday, the 5th U.S. Circuit Court of Appeals reversed the Federal Trade Commission’s directive that prohibited what regulators called misleading advertisements for basic tax filing services.

The appellate judges determined that allowing an administrative law judge to rule on the deceptive advertising case crossed constitutional boundaries regarding the separation of powers between government branches.