Intuit, Incorporated v. Federal Trade Commission - Petition for Review (No. 24-60040)

Sep 19, 2026

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Federal Trade Commission v. Intuit, Incorporated concerns FTC authority to adjudicate a deceptive advertising claim before an administrative law judge. The FTC alleged TurboTax “Free Edition” ads misled consumers into believing all TurboTax products are free. Relying on Section 5 of the FTC Act and addressing the constitutional separation-of-powers issue discussed in SEC v. Jarkesy, the Fifth Circuit grants Intuit’s petition, vacates the FTC order, and remands for further proceedings.

LanguageEnglish

CategoryLetters

FormatPDF

Pages29

Reading Time10 min

AccessFree to download

Background

FTC administrative complaint and cease-and-desist order

Discussion

Jurisdictional and constitutional arguments under 15 U.S.C. §45(c)

A. Constitutional analysis under Jarkesy

Hniteo为fates Court of Appealsfor the Jfifth Circuit United States Court of AppealsFifth Crcuit FILED March 20,2026 No.24-60040 Lyle W.Cayce Clerk INTUIT,INCORPORATED, Petitioner Dersus FEDERAL TRADE COMMISSION, Respondent. Petition for Review from the Federal Trade CommissionAgency No.9408 Before JONES,BARKSDALE,and Ho,Circuit Judges.EDITH H.JoNES,Circuit Judge: The Federal Trade Commission(“FTC”)is authorized by Section 5of the FTC Act to prosecute“unfair or deceptive acts or practices”involving interstate commerce.15 U.S.C.§45(a)(1).Affirming anadministrative law judge("ALJ"),the FTC imposed a cease-and-desistorder on Intuit,Inc.,for"deceptive"advertisements that one of its popularTurboTax preparation products is"free”for"simple tax returns."Following the Supreme Court's decision in SEC v.Jarkesy,!we hold that Case:24-60040 Document:230-1 Page:2 Date Filed:03/20/2026 No.24-60040 adjudication of a deceptive advertising claim before an administrative lawjudge violated the constitutional separation of powers.Intuit's petition forreview is GRANTED;the FTC's order is VACATED;and the case isREMANDED to the agency for further proceedings. # I.BACKGROUND Petitioner Intuit,Inc.sells "TurboTax,"a popular line of online anddesktop tax-preparation products.TurboTax"Free Edition"has been partof the TurboTax range for more than a decade,available to taxpayers for whatIntuit refers to as"simple tax returns."Most American taxpayers do nothave"simple tax returns."Intuit has expanded access to the TurboTax FreeEdition over time,but“simple tax returns”has previously excludedtaxpayers with mortgage and property deductions,itemized deductions,unemployment income,education expenses,charitable donations above acertain threshold,investment or rental property income,and expenses fromself-owned businesses.The TurboTax website is designed so that anyindividual taxpayer can begin preparing a tax return in TurboTax FreeEdition,but those who enter disqualifying information are prompted beforefiling to upgrade to a paid product. Intuit advertised TurboTax Free Edition across a variety of popular,accessible media.These advertisements typically drew attention to the factthat TurboTax Free Edition does not cost anything,although Intuit usuallyadded disclosures that state the TurboTax Free Edition is limited totaxpayers with"simple tax returns,"“simple U.S.returns,”or similarverbiage. In 2022,FTC issued an administrative complaint alleging thatTurboTax Free Edition advertisements deceived consumers into believingthat all TurboTax products are free.These allegations were predicated onSection 5 of the FTC Act,which proscribes"unfair or deceptive acts or No.24-60040 practices."15 U.S.C.§45(a)(1).2 The Commission initially filed suit in theNorthern District of California and moved for a preliminary injunctionagainst Intuit,which was denied.FTC then changed course,abandoned thefederal suit,and pursued a cease-and-desist order by means of internaladjudication.An ALJ presided over the adjudication and issued a decisionconcluding that Intuit's advertisements were likely to mislead a significantminority of consumers.On appeal by Intuit,three Commissioners affirmedin an opinion largely tracking the ALJ's decision.The cease-and-desist orderis remarkably broad:it prohibits Intuit for the next twenty years fromadvertising “any goods or services”as free unless specific,extensive,andarguably unworkable requirements are satisfied.The order is not confined totax-preparation solutions and extends to all products sold by Intuit.3 I.DISCUSSION Intuit petitions for review under 15 U.S.C.§45(c)and raises a varietyof arguments.4 The threshold argument that FTC unlawfully adjudicated 2 This case does not consider any unfair competition claims under the FTC Actother than claims for deceptive advertising.15 U.S.C.§45(a)(1)("Unfair methods ofcompetition in or affecting commerce...are hereby declared unlawful."). ³Intuit's numerous pr

FAQs

What did the FTC allege about Intuit’s TurboTax Free Edition advertising?

The FTC alleged the advertisements deceived consumers into believing all TurboTax products are free, despite limitations for “simple tax returns.”

What constitutional issue drives the Fifth Circuit’s decision?

The court holds that adjudication of a deceptive advertising claim before an administrative law judge violated the constitutional separation of powers in light of SEC v. Jarkesy.

What is the outcome of Intuit’s petition for review?

The Fifth Circuit grants the petition for review, vacates the FTC’s order, and remands the case to the agency for further proceedings.

Sep 19, 2026

Upload by Noah