H&R Block, TaxAct, TaxSlayer ‘Quietly’ Transmit Sensitive User Information to Meta, Class Action Alleges

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A proposed class action claims Meta Platforms has collected the financial information of millions of consumers through a piece of code that is secretly embedded into the webpages of major online tax-filing services H&R Block, TaxAct and TaxSlayer, among potentially others.

Are you a California or Pennsylvania resident with a Facebook account who’s used H&R Block for online tax prep? Let us know here.

The 44-page case alleges that the piece of code, called the Meta pixel, is installed on at least six million third-party websites, allowing the platform to “spy” on consumers and record their online activities without consent. The complaint contends that as unsuspecting consumers use the above-mentioned online tax filing services, Meta surreptitiously gains access to their names; email addresses; adjusted gross incomes; tax-filing statuses; refund amounts; dependents’ college scholarship amounts and their dependents’ names.

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As a user interacts with a pixel-enabled webpage, Meta receives real-time logs of their actions, such as which sub-pages they visit, buttons they click, options they select (e.g., from a multiple-choice form), and words they type, the complaint explains. Meta then uses cookies to match the website visitor with their corresponding Facebook profile, the suit claims.

As the case tells it, Meta gives the tracking tool to third-party advertisers to learn more about its users’ offsite interests, build detailed profiles for each user and “customize, micro-target, and monitor” advertising campaigns. The lawsuit says the pixel also tracks the activity of individuals who do not have Meta platform accounts.

Likewise, the pixel helps third-party advertisers “improve users’ experience on their websites, target advertisements more effectively, and drive more sales,” the case states.

According to Meta’s Data Policy, advertisers that use the pixel must have “lawful rights to collect, use, and share your data before providing any data to us.” Meta also claims that it is against its policies “for websites and apps to send sensitive information about people through our Business Tools,” and its system is “designed to filter out potentially sensitive data it detects,” the suit relays.

However, Meta neither verifies that businesses have obtained adequate consent from users before transmitting their sensitive data nor filters out the private information it receives, the case alleges.

“To the contrary, the company routinely collects, stores, and uses consumers’ sensitive data without appropriate consent and—in some instances—in violation of state and federal laws and regulations,” the lawsuit says.

Under federal and state laws, it is illegal for any business that provides tax-filing services, such as H&R Block, TaxAct and TaxSlayer, to disclose tax return information without first obtaining written consent, the complaint charges.

The filing claims that all three tax-filing websites failed to secure valid consent pursuant to these regulations, specifically since none of their terms of use or privacy policies contain spaces for dates or signatures. The companies’ policies also allegedly fail to mention Meta or Facebook as a recipient of tax-return information, and they do not specify what information is transmitted. Further, each of the tax-filing providers illegally conditions their provision of services on users’ acceptance of their terms of use and privacy policies, the complaint further argues.

The lawsuit seeks to represent all Facebook users who are current or former users of tax-preparation service providers in the United States with web properties through which Meta acquired tax return information and for which neither the tax preparation service provider nor Meta obtained a valid consent.

Are you a California or Pennsylvania resident with a Facebook account who’s used H&R Block for online tax prep? Let us know here.