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

Friday, March 20, 2026 at 5:22 PM

A federal appeals court has reversed a government order that would have prevented Intuit from advertising TurboTax as 'free' when many users actually had to pay. The court ruled that having an administrative judge handle the deceptive advertising case violated constitutional principles.

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.

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