FTC sues H&R Block over online free filing option

(CNN)– The Federal Trade Commission is suing tax preparation company H&R Block over issues tied to its online free file option.

The FTC alleges H&R Block makes it difficult for consumers to downgrade to less costly packages and it misleads many into thinking they qualify for free filing.

According to the FTC, to downgrade to a lower cost option customers must first contact customer service then re-enter all of their tax data.

By contrast the agency said the experience is hassle-free when consumers upgrade to a more expensive option.