FTC Finalizes $7 Million Settlement With H&R Block

The FTC says it has finalized a $7 million settlement with H&R Block.

The Federal Trade Commission (FTC) announced the settlement Wednesday (Jan. 8) as part of a larger agreement with the tax preparation company, which has agreed to make a number of changes to its practices before the 2025 tax filing season.

The commission last year charged H&R Block with unfairly requiring customers hoping to downgrade to a cheaper H&R Block product to contact customer service. The regulator also said the company unfairly deleted users’ previously entered data and made deceptive claims regarding “free” tax filing.

“The settlement requires H&R Block to make it easier for consumers to downgrade products and by eliminating its practice of completely deleting consumers’ previously entered data upon downgrade,” the FTC said. “By February 15, 2025, the company is required to allow consumers to downgrade products using a chatbot or other automated means, instead of requiring them to call customer service or chat with a live customer service agent.”

Aside from paying the $7 million settlement, the agreement also requires H&R Block to stop completely deleting consumers’ previously entered information by the 2026 tax season. In addition, H&R Block must reveal in its “free” advertising either the percentage of taxpayers who are eligible to use “free” products or that the majority of taxpayers do not qualify.

In a statement sent to PYMNTS on Wednesday, H&R Block said: “H&R Block prides itself in providing consumers with quality online tax preparation products, which has never been an issue in this matter. Many of the changes in the settlement have either already been made or are in process. We are pleased to put this behind us so we can focus on serving our clients during the 2025 tax season.”

Also this week, the FTC settled a complaint with gig economy platform Angi Services, requiring it to pay $2.95 million and make “substantial” changes to its business practices.

“Handy Technologies relied on inflated and false earnings claims to lure workers onto its platform,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a news release. “It then deducted inadequately disclosed fines and fees from their wages.”

Reached by PYMNTS, a Handy spokesperson said the FTC allegations were unfair, but that the company chose to settle to “put the matter to rest” and focus on its business.

“Though we were prepared to litigate, we chose to enter into an agreement with these parties to put this matter to rest and get back to putting our 100% focus on supporting our customers: the small businesses who help Americans care for and maintain their homes,” the statement said.