News release\u00a0<\/p>\n
Los Angeles\u00a0County\u00a0has 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.\u00a0\u00a0<\/p>\n
This settlement arose from H&R Block\u2019s disclosure of customers\u2019 confidential taxpayer information without their consent to third-party advertising companies through tracking devices like Meta pixels embedded on H&R Block\u2019s website, the release said.\u00a0<\/p>\n
\u201cPrivacy is not a luxury. It is a fundamental consumer right,\u201d Board Chair and\u00a01st District Supervisor Hilda L. Solis\u00a0said in the release. \u201cNo company should profit from sensitive taxpayer information without a consumer\u2019s 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\u2019s privacy.\u201d\u00a0\u00a0<\/p>\n
The settlement includes permanent injunctive relief against H&R Block to prevent the sharing of taxpayer information and requires the company to\u00a0comply with\u00a0applicable consumer protection and privacy laws, the release said.\u00a0The settlement requires H&R Block to create a $367,540 restitution fund for eligible H&R Block customers using the company\u2019s Do-it-Yourself online tax preparation website between Nov.\u00a016, 2019,\u00a0and Nov.\u00a023, 2022, who encountered certain screens in connection with filing tax return forms related to Education Credits or Health Savings Accounts.\u00a0\u00a0<\/p>\n
Any unclaimed consumer restitution monies will be distributed to the\u00a0county\u2019s Department of Consumer and Business Affairs.\u00a0<\/p>\n
\u201cIn an economy where personal data and consumer attention have become valuable commodities, protecting people\u2019s privacy has never been more important,\u201d Rafael Carbajal,\u00a0director of the\u00a0county\u2019s Department of Consumer and Business Affairs, said in the release. \u201cThis settlement sends a clear message that companies entrusted with consumers\u2019 personal information will be held accountable when they fail to protect it.\u201d\u00a0<\/p>\n
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\u2019s 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\u2019 fees and costs.\u00a0<\/p>\n
\u201cMy office is committed to protecting consumers and ensuring businesses comply with consumer protection laws,\u201d County Counsel Harrison said\u00a0in the release. \u201cThis settlement sends a message to other businesses to safeguard consumers\u2019\u00a0private information and take data privacy laws seriously.\u201d\u00a0<\/p>\n