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Happy Tax Files False Advertising Lanham Act Lawsuit Against H&R Block | AP News

Since 2015, Happy Tax has utilized and advertised upfront and transparent pricing for its assisted CPA prepared tax preparation services. Happy Tax was the first notable national company to introduce this innovative pricing strategy to an industry that historically provided prices to clients after their tax returns were completed.

The alleged false and misleading commercial and web advertising promotes upfront and transparent pricing as being available “ ONLY  From H&R Block” ( emphasis  added). Section 43(a) of the Lanham Act, codified at 15 U.S.C. § 1125, provides in relevant part:

Any person who . . . in commercial advertising or promotion, misrepresents the nature, characteristics, quality, or geographic origin of his or another person’s goods, services, or commercial activities, shall be liable in a civil action by any person who believes that he or she is likely to be damaged by such act.

Federal courts have held that advertising violates this statute when it is likely to mislead and confuse a consumer. Happy Tax has been offering and advertising upfront and transparent pricing since 2015; therefore, H&R Block’s new advertising claims are false and misleading.

Given the importance of pricing in the tax return preparation market, such deception is material and likely to influence consumers’ purchasing decisions. As Happy Tax has been injured by H&R Block’s false and misleading advertising, Happy Tax is entitled to monetary damages and injunctive relief under the Lanham Act. A hearing will be scheduled to request a preliminary injunction from the Court to compel H&R Block to cease and desist making false or misleading statements, stop any use of the false misleading promotions in all forms of media.

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Happy Tax Files False Advertising Lanham Act Lawsuit Against H&R Block.