H&R Block sues US Federal Trade Commission over tax ads probe

H&R Block sued the US Federal Trade Commission on Wednesday, seeking an order that could upend the agency’s case accusing the tax giant of misleading consumers about the scope of its free tax-filing services.

H&R Block sued the US Federal Trade Commission on Wednesday, seeking an order that could upend the agency’s case accusing the tax giant of misleading consumers about the scope of its free tax-filing services. The lawsuit in Kansas City, Missouri, federal court claims the FTC’s use of internal administrative law judges to hear cases violates the US Constitution. The FTC last month accused H&R Block of deceiving customers with broad marketing for “free” online tax filing services that really only apply to simple returns. The agency also said H&R Block had unfairly deleted consumers’ tax data. H&R Block has denied the FTC’s claims. A hearing before an administrative judge is set for Oct. 23. Wednesday’s lawsuit cites the power of US presidents enshrined in the Constitution to remove “inferior officers.” It says the FTC’s internal judges are improperly insulated from that authority, and that the agency must abandon their use. “The FTC could still vindicate its law-enforcement interests by conducting the adjudication itself,” the lawsuit said.