CBS News
H&R Block wiped out tax data of filers looking for less pricey option, FTC alleges
H&R Block marketed its tax-preparation products as free yet deleted the data of customers as way to pressure them into paying for pricier services, the Federal Trade Commission alleged on Friday.
The tax-preparation software giant’s online tax-filing products lead users to costlier products made for more complicated tax filings, even if they don’t need the additional forms and schedules offered, the FTC stated in an administrative complaint.
If a person realizes they don’t need or want a costlier option, they are presented with a series of time-consuming hurdles to downgrade after already spending a fair amount of time entering their data, the agency said Friday of the company’s setup.
U.S. Federal Trade Commission
Specifically, when consumers choose to downgrade, H&R Block requires they contact its customer support via chat or phone. Then, its system deletes all the tax data the consumers have entered, requiring them to start their tax return from scratch, creating a big disincentive to downgrading.
In contrast, data seamlessly moves to more expensive products instantly, the FTC noted.
“H&R Block designed its online products to present an obstacle course of tedious challenges to consumers, pressuring them into overpaying for its products,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection.
Beyond its unfair practices regarding downgrades, H&R Block has for years engaged in deceptive advertising, marketing its online tax preparation services as free when it’s not for many, the FTC said in its complaint, which begins an administrative process against the company.
H&R Block provides its clients with “fair and transparent pricing,” Dara Redler, the company’s chief legal officer, told CBS News in an emailed statement. “H&R Block allows consumers to downgrade to a less-expensive DIY Product via multiple mechanisms while ensuring the preparation of accurate tax returns.”
The FTC’s claim against H&R Block comes a month after the agency barred Intuit from advertising its popular TurboTax product as free, calling the practice deceptive, as most have to pay to use the tax-filing software.
Intuit said it is appealing the ruling, and noted the FTC’s order contained no monetary penalty.
CBS News
Tropical Storm Milton forms in Gulf; forecast to strengthen into hurricane headed toward Florida
Tropical Storm Milton has formed in the Gulf of Mexico and is forecast to strengthen into a hurricane headed toward Florida with possible impacts to its western coast, the National Hurricane Center said on Saturday. Maximum sustained winds are expected to be at 40 mph with higher gusts and Milton is currently moving north-northeast, NHC said in an advisory.
Milton is forecast to undergo a period of rapid intensification before it makes landfall as a Category 2 hurricane across Florida’s west coast, CBS News Miami reported.
The forecast comes a little more than a week after Hurricane Helene made landfall in Florida and across the Southeast, killing more than 200 people and causing immense destruction. President Biden on Thursday took an aerial tour of Florida’s Big Bend where Helene struck as a Category 4 storm. Hundreds of people are still missing and Mr. Biden said the work to rebuild will cost “billions of dollars” as communities suffer still without power, running water and passable roads.
NOAA
Milton is forecast to move across the southwestern Gulf of Mexico through Sunday night then across the south-central Gulf on Monday and Tuesday before reaching Florida’s west coast by the middle of the week, NHC said. Heavy rain is possible in the region starting Sunday into Monday, CBS Miami reported, and more rain and heavy winds will most likely arrive on Wednesday. Hurricane and storm surge watches will most likely be required for portions of Florida starting Sunday, the National Hurricane Center said.
Along with the heavy rainfall, the hurricane center said to expect risks of flooding.
Residents in the area should ensure they have a hurricane plan in place, the National Hurricane Center said, follow the advice of local officials and check back for forecast updates.
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A new Barbie has joined Mattel’s lineup of inclusive dolls. The first “Diwali doll” was announced by the toymaker on Friday, a few weeks shy of the Hindu holiday of Diwali, also known as the festival of lights.
The festival, which lasts for five days, is marked on Western calendars to begin on Nov. 1, but some celebrations start on Oct. 31.
The doll, created in collaboration with fashion designer Anita Dongre, features traditional elements including the lehenga skirt, floral print and golden shoes, according to Mattel’s website. The doll is available at major retailers for $40.
“The look is infused with beauty and symbolism to rejoice in victory of light over darkness with contemporary silhouettes,” the description reads for the Diwali doll.
Lalit Agarwal, country manager for Mattel India, said in a news release that through the Diwali doll, the brand is hoping to showcase “India’s vibrant cultural heritage on a global stage while continuing to celebrate the power and beauty of diversity.”
Earlier this year, Mattel announced the first-ever blind Barbie doll and a Black Barbie with Down syndrome.
In addition, to celebrate International Women’s Day on March 8 and Barbie’s 65th birthday on March 9, the doll brand announced it was adding new dolls to its Role Models collection, based on real-life singers and actresses from around the world. They’re not for sale – a one-of-a-kind doll was made for each of the honored women.
The dolls are meant to introduce “girls to remarkable women’s stories to show them you can be anything,” according to Mattel.
