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

Happy Tax, tax franchise, announced that it has filed suit against tax preparation franchise, H&R Block. The suit intends to stop H&R Block (HRB) from making what Happy Tax claims are false and misleading representations in their advertisements, which have been misleading consumers, including Happy Tax's current and potential customers. The suit is proceeding in the United States District Court for the Southern District of New York.

Since 2015, Happy Tax has utilized and advertised upfront and transparent pricing for its assisted CPA prepared tax preparation services.

The alleged false and misleading commercial and web advertising promotes upfront and transparent pricing as being available "ONLY From H&R Block". 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, Happy Tax said.

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