An appeals court invalidated the Biden-era Federal Trade Commission’s attempt to punish Intuit for allegedly deceptive ads that pitched TurboTax as free.
Under then-Chair Lina Khan, the FTC determined in 2024 that the TurboTax maker violated US law with deceptive advertising and ordered it to stop telling consumers, without more obvious disclaimers, that TurboTax or other products are free. The FTC’s chief administrative law judge had previously found that Intuit’s ads violated prohibitions on deceptive advertising because the firm “advertised to consumers that they could file their taxes online for free using TurboTax, when in truth, for approximately two-thirds of taxpayers, the advertised claim was false.”
Intuit appealed in the conservative-leaning US Court of Appeals for the 5th Circuit and got a resounding victory on Friday in a 3–0 ruling issued by a panel of judges. “Following the Supreme Court’s decision in SEC v. Jarkesy, we hold that adjudication of a deceptive advertising claim before an administrative law judge violated the constitutional separation of powers,” the 5th Circuit panel said.
