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  "documentTitle": "Intuit Inc. (INTU)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2024-09-20 00:00:00",
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      "kind": "callout",
      "text": "Credit Karma Was Found to Have Made False Claims to Consumers",
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      "text": "This represents just one of several instances where regulators took action against an Intuit business for allegedly deceiving customers.",
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      "text": "FTC Takes Action to Stop Credit Karma From Tricking Consumers With Allegedly False “Pre-Approved” Credit Offers",
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      "text": "According to the FTC's complaint, Credit Karma violated Section 5 of the Federal Trade Commission Act by falsely representing that consumers were pre-approved for credit offers or had 90% odds of approval. The complaint alleges that Credit Karma's conduct harmed consumers by: Deceiving them about whether they were approved; Costing consumers time and harming their credit score.",
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      "text": "Credit Karma has a troubled history with regulators, having allegedly harmed consumers in multiple ways, first in 2014 for alleged violations of data privacy and again in 2016/17 for allegedly violating section 22100 of the California Financial Code by acting as a broker for loans. In September 2022, the FTC alleged that the Company deceived customers by claiming they were “pre-approved” for offers since that was found to drive higher clickthrough rates (and thus generate more revenue for Credit Karma). Credit Karma settled and paid a $3 million fine. Of note, the violation period, from February 2018 to April 2021, entirely occurred during the tenure of co-founder and longtime CEO Ken Lin and continued after the Company was acquired by Intuit.",
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      "kind": "quote",
      "text": "I was declined for a pre-approved credit card offer .... How is that possible?!?!?! — Customer service training materials cited in FTC complaint.",
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      "text": "Red underline represents Spruce Point emphasis. Source: FTC press release, Spruce Point Research",
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      "text": "FTC Settlement Related To Alleged Customer Deception Sullied Credit Karma's Reputation",
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