News release
Los Angeles County has reached a pre-litigation settlement of consumer protection claims against HRB Digital LLC and HRB Tax Group Inc. (collectively, H&R Block), the county announced in a news release.
This settlement arose from H&R Block’s disclosure of customers’ confidential taxpayer information without their consent to third-party advertising companies through tracking devices like Meta pixels embedded on H&R Block’s website, the release said.
“Privacy is not a luxury. It is a fundamental consumer right,” Board Chair and 1st District Supervisor Hilda L. Solis said in the release. “No company should profit from sensitive taxpayer information without a consumer’s informed consent. This settlement sends a clear message that Los Angeles County will aggressively enforce our consumer protection laws and hold corporations accountable when they put profits ahead of people’s privacy.”
The settlement includes permanent injunctive relief against H&R Block to prevent the sharing of taxpayer information and requires the company to comply with applicable consumer protection and privacy laws, the release said. The settlement requires H&R Block to create a $367,540 restitution fund for eligible H&R Block customers using the company’s Do-it-Yourself online tax preparation website between Nov. 16, 2019, and Nov. 23, 2022, who encountered certain screens in connection with filing tax return forms related to Education Credits or Health Savings Accounts.
Any unclaimed consumer restitution monies will be distributed to the county’s Department of Consumer and Business Affairs.
“In an economy where personal data and consumer attention have become valuable commodities, protecting people’s privacy has never been more important,” Rafael Carbajal, director of the county’s Department of Consumer and Business Affairs, said in the release. “This settlement sends a clear message that companies entrusted with consumers’ personal information will be held accountable when they fail to protect it.”
The settlement was reached by County Counsel Dawyn R. Harrison on behalf of the People of the State of California and benefits consumers across California. Los Angeles County Counsel’s Affirmative Litigation and Consumer Protection Division investigated the alleged violations and negotiated the settlement. The settlement requires H&R Block to pay a total of $515,000 in monetary relief including consumer restitution, civil penalties, and attorneys’ fees and costs.
“My office is committed to protecting consumers and ensuring businesses comply with consumer protection laws,” County Counsel Harrison said in the release. “This settlement sends a message to other businesses to safeguard consumers’ private information and take data privacy laws seriously.”
The Department of Consumer and Business Affairs encourages L.A. County residents to report any unfair, deceptive or illegal business practices to DCBA by emailing [email protected], filing a complaint online at dcba.lacounty.gov, or calling 800-593-8222.
