in Newswire Published on July 21, 2023

TaxAct, H&R Block Facing Class Action for Allegedly Sharing Consumer Data with Facebook, Google [UPDATE]

Last Updated on April 26, 2024

Hartz v. TaxAct, Inc.

Filed: July 15, 2023 ◆§ 1:23-cv-04591

A proposed class action lawsuit claims TaxAct unlawfully shared consumers’ personal data with Meta (Facebook) and Google without consent.

Defendant(s)

TaxAct, Inc.

Law(s)

Electronic Communications Privacy Act of 1986 Illinois Consumer Fraud and Deceptive Business Practices Act New York General Business Law

State(s)

Illinois

April 26, 2024 – TaxAct Agrees to Settle Data-Sharing Lawsuit for $17.45 Million

TaxAct has agreed to settle a proposed class action case to which the plaintiffs in the lawsuits detailed on this page were added.

Are you owed unclaimed settlement money? Check out our class action rebates page full of open class action settlements.

The proposed settlement, which awaits preliminary approval from the court, would cover anyone in the United States who used a TaxAct online do-it-yourself consumer Form 1040 tax filing product to file a tax return between January 1, 2018 and December 31, 2022. The deal would also cover anyone in the United States whose spouse used a TaxAct online do-it-yourself consumer Form 1040 tax filing product to file a joint tax return during that same period.

Under the proposed class action settlement, TaxAct will pay $14,950,000 to covered individuals who file a valid claim. Court documents estimate that the average class member’s net share of the cash settlement rebate will be $18.65. Up to $2,500,000 will be added to the settlement fund to cover notice and administration costs, and any unused funds will be remitted to class members, court documents add.

Consumers covered by the deal can file a claim by mail or online when the official settlement website—TaxActClassSettlement.com—goes live. ClassAction.org will update this page when the settlement website goes live, so be sure to check back often.

Class members who submit a timely, valid claim will also receive complimentary access to the defendant’s Xpert Assist feature if they use TaxAct’s website to prepare their 2024 tax returns. This service, which TaxAct customers can purchase for $59.99, provides live advice and assistance from tax experts to customers as they complete their tax returns.

Overall, the total value of the TaxAct settlement is estimated to be at least $23,250,000, court documents say.

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Two proposed class action lawsuits claim TaxAct and H&R Block—as well as the latter’s subsidiaries, HRB Digital LLC and HRB Tax Group, Inc.—unlawfully shared consumers’ personal data with Meta (Facebook) and Google without consent.

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The lawsuits say that following a 2022 investigation by The Markup, a congressional report published on July 12 of this year revealed that the online tax preparation companies had for years illegally shared consumers’ confidential tax return information (TRI) with the third-party advertising platforms without consent.

According to the suits, the defendants transmitted user data using the Meta pixel and Google Analytics—pieces of programming code embedded into TaxAct.com and HRBlock.com that enable the third parties to track and collect website visitors’ information and activity for advertising purposes.

As one case tells it, TaxAct’s website has allegedly utilized the Meta pixel since at least 2018 to share a “significantly greater amount of TRI and [personally identifiable information] than it disclosed” to consumers, including their full names, contact information, dates of birth, filing status, adjusted gross income, approximate refund amount and other detailed financial data. In addition, the tracking code transmitted to Facebook TaxAct.com users’ geographic location, web browser type, buttons clicked and more, the complaint alleges.

The filing adds that TaxAct has purportedly used Google Analytics since 2014 to capture and transmit similar financial information to the unauthorized third party.

Likewise, the tracking codes embedded into HRBlock.com allow Facebook and Google to collect sensitive consumer data, including names, web pages visited, details about income and tax credits or deductions, health savings account contributions, educational expenses and more, one lawsuit claims.

At no point did either of the companies obtain valid consent from users to disclose their private information to third parties, the suits charge.

The case against TaxAct argues that, until recently, the company’s privacy policy was woefully lacking in detail about its data sharing practices, and the lawsuit against H&R Block claims the company’s actions plainly violated its own privacy statement.

The lawsuit against H&R Block looks to represent anyone in the United States who used the company’s tax preparation software to prepare and/or file a tax return anytime since H&R Block began unlawfully sharing consumer TRI with third parties through November 23, 2022. The lawsuit against TaxAct looks to cover anyone in Illinois who has used TaxAct since 2014.

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