01:44 PM EST, 11/12/2024 (MT Newswires) -- H&R Block ( HRB ) has reached a proposed settlement with the Federal Trade Commission, agreeing to pay $7 million for consumer redress and to make key adjustments to its tax filing services by the 2025 tax season, the FTC said.

Under the terms of the agreement, H&R Block ( HRB ) will make it easier for users to downgrade to lower-cost products without contacting customer service and stop deleting previously entered data upon downgrades, the commission said. By the 2026 filing season, the company would be required to stop completely deleting customer's previously entered information, it added.

The agreement also mandates clearer advertising of the limitations on "free" filing services, addressing the FTC's allegations of deceptive practices, the regulator said. The proposed order also requires the company to disclose either the percentage of taxpayers eligible for its "free" filing service or disclose that most taxpayers do not qualify, it added.

The settlement awaits final public comment before implementation, according to the commission.

H&R Block ( HRB ) did not immediately respond to MT Newswires' request for comment.

Shares of the company were down nearly 2% in recent trading.

Price: 60.11, Change: -1.14, Percent Change: -1.86