H&R Block wiped out tax data of filers looking for less pricey option, FTC alleges

H&R Block marketed its tax-preparation products as free yet deleted the data of customers as way to pressure them into paying for pricier services, the Federal Trade Commission alleged on Friday. 

The tax-preparation software giant's online tax-filing products lead users to costlier products made for more complicated tax filings, even if they don't need the additional forms and schedules offered, the FTC stated in an administrative complaint.

If a person realizes they don't need or want a costlier option, they are presented with a series of time-consuming hurdles to downgrade after already spending a fair amount of time entering their data, the agency said Friday of the company's setup.