Ontario court certifies class action claiming TurboTax misled Canadians for years

Canadians who've used TurboTax to file their taxes over the past decade could be affected by a certified class action lawsuit just certified in Ontario.

The Ontario Superior Court of Justice has certified a consumer protection class action against Intuit Canada ULC and its U.S. parent company, Intuit Inc. — the company behind TurboTax — over claims that the software was falsely advertised as "free."

The lawsuit, brought by an individual consumer on behalf of other consumers who purchased the product since Jan. 1, 2015, alleges that for years, TurboTax was promoted with slogans like "free, free, free" across TV, print, online and social media campaigns. Only during the 2021 tax year did the messaging shift to "free for simple tax returns."

According to the claim, many users found out they actually had to pay for the product only after entering their personal and financial information into the software. The lawsuit alleges this amounted to a "bait-and-switch" and a form of "drip pricing," where the real fees aren't disclosed until later in the process.

On July 24, Justice Leiper ruled that the case can move forward as a class action, certifying claims under Ontario's consumer protection laws, the federal Competition Act and unjust enrichment. 

The plaintiff is seeking damages on behalf of Canadians who have purchased TurboTax's online software since 2015, though no amount has been determined yet since it is early in the legal process. 

However, the court certified a common issue relating to aggregate damages, meaning that if Intuit is ultimately found liable, damages could potentially be assessed on a class-wide basis rather than requiring every class member to prove their losses individually.

Rochon Genova, the Toronto litigation firm representing the plaintiff, has been pursuing the proposed consumer protection class action since it was first filed in August 2022. 

Intuit Canada ULC and Intuit Inc. deny the allegations and have indicated they plan to appeal.

For now, Canadians who purchased TurboTax's online software to prepare or file their taxes since Jan. 1, 2015 don't need to take any immediate action. Those with questions or interest in joining this case are encouraged to contact Rochon Genova directly on their website for more information.