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The Courts Government News

Intuit Sued Over Product Activation 456

An anonymous reader writes "PCWorld is reporting: [Scott] Leviant's firm of Stanbury & Fishelman has filed a class-action lawsuit against Intuit in Los Angeles Superior Court on behalf of all U.S. purchasers of TurboTax software for the 2002 tax year. The suit alleges that Intuit engaged in unfair and deceptive business practices by failing to fully disclose the mechanisms and consequences of its product-activation technology before consumers pay for the software."
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Intuit Sued Over Product Activation

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  • by Anonymous Coward on Saturday March 08, 2003 @05:59PM (#5468717)
    Battling the evil forces of Microsoft Money? Ahh, the good old days when things were black and white.
    • hehe no doubt. I actually switched from money to quicken for just that reason a few years back. Just last week I bought money again. I've had to call MS to reactivate Windows when I built a new computer. Pretty painless, the person I spoke with was really easy going. I didn't feel like they though I was trying to just get a second system going. I'm hearing quite a different tale from people dealing with Intuit and reactivation though.
  • by (1337) God ( 653941 ) on Saturday March 08, 2003 @06:00PM (#5468722)
    It's not that product activation is bad all of the time, it's just that the implementation really sucks on occasion.

    I have no problem with paying for good, reliable, quality software for my home machine, but if you use tricks or traps to sucker people into paying more than they should, that's just not right.

    SOFTWARE MAKERS: Don't cry foul about piracy and then turn around and be just as dishonest with consumers.

    Well, I guess this is a reason to go back to pirating my games ;-)
    • by Anonymous Coward on Saturday March 08, 2003 @06:41PM (#5468912)
      Product activation is *always* bad. I pay for my software. Even donation-ware and shareware. Heck, I even buy CDs from Red Hat and FreeBSD Mall. Gives me a warmFuzzyFeeling(tm).

      I would NEVER pay for software that plays tricks with my hard drive, even if I needed it and the price was right. When I see software that does this, I get mad and pull out my eyepatch and put the parrot on my shoulder.
      • by Goldberg's Pants ( 139800 ) on Saturday March 08, 2003 @07:15PM (#5469045) Journal
        There's also the new protection from Macrovision that some games (Mechwarrior 4 Mercenaries for example) use that install a program that monitors what you burn to CD, and has been reported to destroy your ability to burn *ANY* CD in some cases. It's nasty. It runs as a service in XP (look for C-Dilla in the services... Macrovision bought C-Dilla), and if you get rid of it, delete the files it installs, it reinstalls the next time you run the software UNLESS you run it as a limited user. (Of course, doing that means you can't save your config in the game.) If you delete the DLL in the game directory that it calls, the game then won't load.

        The companies have become so hellbent on stopping piracy (which their techniques don't. Don't believe me? Check IRC sometime) that they no longer seem to care about fucking over the legit consumer. (Witness the number of problems people have with SecuROM and Safedisc "protected" titles.) All they do with these routines is stop the casual copier, but everyone I know just downloads the titles anyway. I can't remember the last time anybody I know engaged in "casual copying". Macrovision and Sony (they created SecuROM) have pulled the biggest scam ever on the software companies by persuading them to pay for their crappy "protection".

        Side note: Always amuses me in the warez groups .nfo files where they tell you what the protection was:)
    • by Jason1729 ( 561790 ) on Saturday March 08, 2003 @06:49PM (#5468943)
      Yes, it is that product activation is bad all of the time.

      I am against software piracy, and I've bought tax software every year from 1992 until last year (I still have every program). This year I'm doing my taxes by hand for the first time ever.

      The problem with product activation is it turns the software from a product into a service. Even though I have the CD, I can't install the program with full functionality. When I buy software, I want to be able to run it forever. I still have a parition with DOS 6.22 and Windows 3.11, mostly to play older games. I also run legal copies of Windows 98, Windows 2000, and Slackware. I do not run XP, and I won't as long as it has product activation.

      I'm in Canada, but if I was in the US, I'd consider buying the software just to join the lawsuit.

      Jason
      ProfQuotes [profquotes.com]
      • by Sparr0 ( 451780 ) <sparr0@gmail.com> on Saturday March 08, 2003 @06:59PM (#5468982) Homepage Journal
        So write your congressperson and support the BALANCE act, which amends the DMCA to make circumventing activation legal again!
      • by sunwukong ( 412560 ) on Saturday March 08, 2003 @07:27PM (#5469103)
        For us Canucks out here ...

        Like the rest of you I got tired of this Intuit crap and started looking for the alternatives last year.

        TaxWiz [taxwiz.ca]: Used it for my 2001 filing for my family (5 adults). Lousy interface and printing is a royal PITA, but overall did the job. Uh oh, bought by Intuit.

        CanTax [cantax.com]: Used to sell personal versions for consumers, but now concentrates on tax professionals. Tried out the demo and decided to use it this year. Assumes at least better than novice tax prep knowledge. Pricey ($79 for 15 returns) compared to the consumer level stuff but seems solid.

        Dr Tax [drtax.ca]: Like CanTax, targeted towards the professional tax prep people. Tried the demo -- seems solid enough but too much work if you're not a tax geek.

        Anyway, hopefully the field doesn't narrow too much next year!
        • FYI -- when my income was greater (and my family smaller) I used to have my taxes prepared professionally. The best way to go IMHO if you're short on time and want to avoid the weird pitfalls and aggravations that go with less straightforward tax situations.

          It was roughly $70 a person if I remember right ... YMMV of course.
      • Are you really doing your taxes by hand or are you using a spreadsheet? I remember watching my dad do his taxes in the 1970's without even a calculator. I remember him bringing home a huge electronic calculator that he borrowed from the US gubment one tax year. That was the first calculator I ever saw.

      • I did the online thing (turbotax.com). They do a good job - I won't buy their local version, but I'm happy to support their online version.
    • t's not that product activation is bad all of the time...

      If I've bought a product, I don't want to have to activate it. I don't even want to type in any lame 20 character alpha-numeric serial numbers. I want the old Borland Turbo Pascal license, which went something like this: "You are expect to treat this product like a book. You can run it on as many machines as you like, as long as you only use one copy at a time. You can give it to somebody else, but only if you destroy your copies."

    • > implementation really sucks on occasion

      Yeah, if they want to be so draconian about it why not just put one hardware dongle in the box? Sadly, I know why, because trashing your hard drive is much cheaper than a 20 cent bit of plastic and an 80 cent chip.

      Hopefully this class action will change the economics around a bit. It should be more expensive to ruin my system than to include a hardware dongle.
  • here is the... (Score:5, Informative)

    by Neophytus ( 642863 ) on Saturday March 08, 2003 @06:02PM (#5468732)
    Here is the previous turbotax article [slashdot.org] for those who want to find out where this all started.
  • This whole registration disaster gives consumers a compelling reason to boycott Intuit! Hopefully people will vote with their wallets. Hello TaxCut!
    • by Anonvmous Coward ( 589068 ) on Saturday March 08, 2003 @06:21PM (#5468829)
      "This whole registration disaster gives consumers a compelling reason to boycott Intuit! Hopefully people will vote with their wallets. Hello TaxCut!"

      A boycott would be ineffective in sending a message to them. Your time would be more effective sending them nastygrams about their practices.

      Using a web service or software to assist with taxes is, more or less, a luxury. We're in a crappy economy plus looming war with Iraq. They won't see a connection between the dropoff in sales and their crummy registration practices. (nor does this help those who already have paid for it.)

      If you really want to make a statement, tell them you're unhappy with the and won't do business with them. Simply not buying the software won't send the message across.

      I agree with the spirit of the parent post, I ust think the implementation needs a step added to it. ;)
      • I tried doing just that at this [intuit.com] web page but when I got done with my email, the server returned an error and asked me to try a different URL! Since the web server had swallowed my text in the process, I decided to vote with my money instead and bought Tax Cut the next day.

        For Intuit: If you have inept web server programmers please just post an email address. Like previous posters, I've been a faithful customer of yours since 2000, but no more. After your software destroyed a co-worker's PC with multi OS boot setup I didn't dare go near it. Farewell - and please do fire the uneducated member of your staff that floated this idea.

    • by mlong ( 160620 ) on Saturday March 08, 2003 @06:32PM (#5468869)
      I knew about the turbotax stuff after reading reviews on Amazon.com, so I used TaxCut this year. Unfortunately, TaxCut just plain sucks. It was riddled with bugs (including a problem where it imported my state form from turbotax and stuck it in the boxes for my federal form). Their tech support is clueless (I wrote them on 2 different ocassions). And their software is just plain kludgy - its not elegant or easy-to-use. I found myself having to jump directly to the form because their interview sucked. So next year I'll be looking for something else - not turbotax and not taxcut.
      • Well, TaxCut sucks in its own way even before the purchase. You need to fill out a rebate form for Federal, another one for State and yet another one to get some additional free software. TurboTax requires only one rebate.
  • by wackybrit ( 321117 ) on Saturday March 08, 2003 @06:03PM (#5468740) Homepage Journal
    Okay, start taking bets to see if Stanbury and Fishelman will sue Microsoft for their similarly sinister product activation systems.. bet they don't!

    I think product registration is a great idea, as it can help you get a better service and allows the company to get info on its users.. but forcing you to activate a product is just a Big Brother attitude.

    How would you like it if you had to 'activate' your car every time you moved or made an upgrade to it? Sure, it might help the insurance companies a whole lot, but it's just not right. Ditto for software.
    • by atrus ( 73476 ) <atrus.atrustrivalie@org> on Saturday March 08, 2003 @06:16PM (#5468796) Homepage
      Don't you already activate your car? You usually tell the DMV and insurance company of your new whereabouts.
      • by imadork ( 226897 ) on Saturday March 08, 2003 @07:42PM (#5469166) Homepage
        Don't you already activate your car? You usually tell the DMV and insurance company of your new whereabouts.

        Yeah, but my car doesn't stop working in 30 days if it doesn't get registered with the manufacturer.

        • Yeah, but my car doesn't stop working in 30 days if it doesn't get registered with the manufacturer.

          It can when the DMV decides to suspend your license and/or your insurance company drops your coverage because you didn't keep current information. And I'm not spreading FUD; I've had a license revoked because I didn't keep my whereabouts current.
      • The requirement has nothing to do with the manufactures. Having worked for a vehicle manufacturer for a while on their registration systems I can tell you that any mechanized vehicle has to be registered with the Federal Government (through the manufactures records) when it is sold to a consumer. This is done for reasons varying from taxes to emissions to safety recalls to theft recovery for law enforcement. Local communities also like to know for their own registration and tax purposes and can have their own additional requirements.


        With that covering why you have to register a vehicle, let me now explain why the manufactures haven't fought this particular bit of legislation. The manufactures like the law because it gives them an excuse to keep a close eye on rebates for sales. A common method of fraud by vehicle dealers is to sell a vehicle on a certain date, but not to register it with the manufacture for a date sometimes months afterwords. Since dealers know they will get rebates for each vehicle sold during a certain time period, they simply hold off on the registration until the rebate period comes up. The dealer than gets the factory to dealer rebates and the factory to customer rebates. If the customer even knows enough to ask they are simply told they are getting a little longer period on the warranty for "free". I worked on this computer systems for this, so I can assure that this kind of fraud is quite substantial.


        Hint, if you've ever been asked not to date a vehicle sales purchase agreement, the dealer intends on collecting an additional refund, and quite possibly "your" refund. This is when they don't simply white out your agreement date and write in their own date. We busted one dealer for sending in some 60 to 70 of these in one month, all with obviously the same handwriting! (Think typical rebate of 2-3 grand).

    • by Marillion ( 33728 ) <ericbardes&gmail,com> on Saturday March 08, 2003 @06:28PM (#5468855)
      The US legal system is relies heavly upon precedent. If they win, it automatically makes it much easier to win against microsoft. Basically microsoft would be defending against two suits.
    • by Gudlyf ( 544445 ) <<moc.ketsilaer> <ta> <fyldug>> on Saturday March 08, 2003 @06:34PM (#5468879) Homepage Journal
      How would you like it if you had to 'activate' your car every time you moved or made an upgrade to it?

      Um, this kinds of logic just doesn't apply to software. Unless you live in the ST:TNG universe, you can't replicate your car so that more than one person can drive it at a time.

    • by octalgirl ( 580949 ) on Saturday March 08, 2003 @07:04PM (#5469006) Journal
      Okay, start taking bets to see if Stanbury and Fishelman will sue Microsoft for their similarly sinister product activation systems.. bet they don't!

      I hope someone does - my latest fiasco with this: We have a volume license for XP, and thus should be excluded from activation. But we recently purchased 300 new computers from Dell. The wonderful MS tax kicks in, because you know you can't get a good pc without paying for XP all over again. Of course with this many pcs, I need a ghost image. So I go about my usual routine of setting one up nicely then getting ready for sysprep (don't you just love how sysprep PUTS BACK the MSN and media shortcuts - and those stupid bubble prompts for desk clean up and updates?). After the ghost, the only thing we should have to do is put in the computer name, the answer file takes care of the key codes. But noooooo, a volume license key code is incompatible with preinstalled OS from Dell. But the Dell ones had alredy been activated by them. So that leaves us with
      A) - put your software on by hand for each PC - sucks - not gonna happen
      B) reformat the hard drive, re-install the truck load of drivers that XP didn't plug-n-play, then go about putting your apps on, then ghost - sucks again - who wants to take a nifty new computer and then just wipe it out?
      C) Use the original image, and when the answer file gets stuck at the key code, type in the one on the Dell sticker, then you have to activate it again within 30 days - (we are not even sure if there would be a problem with that, since it was already done) - sucks - tiny numbers out of reach, so it takes almost two ppl to do this. Plus now the number could be tagged to the PC, so you have to keep good inventory of all of this. Nice job again MS - I just love how you are making me work my fanny off. Oh yeah, we went for B - reformat and a big FU.
      • by phillymjs ( 234426 ) <slashdot@stanTWAINgo.org minus author> on Saturday March 08, 2003 @08:06PM (#5469274) Homepage Journal
        You know, every time I bitch about my clients unavoidably ending up with multiple Windows licenses for their PCs, some knucklehead posts about how Dell will (for corporate customers) happily install a customer-provided Ghost image or provide naked PCs sans license and OS if you prove the machines are already covered by a preexisting volume license.

        I would think that for a customer buying 300 PCs at once, Dell would mention those things to you if they really did offer them.

        ~Philly
        • Well, yes they offer that option, for a fee of course. I think it's around 10-15 per pc. We can ghost an entire building in a day, so it is no big deal for us. In other words, we have a good working system in place, and don't need that option, and don't want to spend the extra few thousand on it.

          There is also the MS option, of using something like SMS or some sort and push installing your apps to each workstation. Of course that is $$ for server package, $$ for the server hardware, $$ for workstation licenses, again - sucks - not gonna happen.
          • Jesus H. Christ... (Score:3, Interesting)

            by phillymjs ( 234426 )
            ...the bastards get ya coming and going, don't they?

            Pay for superfluous Windows licenses, or pay more for the privilege of using your pre-existing licenses. What a great choice!

            ~Philly

          • You know, every time I bitch about my clients unavoidably ending up with multiple Windows licenses for their PCs, some knucklehead posts about how Dell will (for corporate customers) happily install a customer-provided Ghost image or provide naked PCs sans license and OS if you prove the machines are already covered by a preexisting volume license.

            Looks like you missed the bold part...
      • Oh yeah, we went for B - reformat and a big FU.

        So you bought MS Windows twice? Yeah, big FU. They must have really hated that.

        This is the point where you start making a case to your superiors for alternative operating systems.
  • by Quaoar ( 614366 ) on Saturday March 08, 2003 @06:07PM (#5468758)
    In protest, I will evade my taxes this year.
  • by MosesJones ( 55544 ) on Saturday March 08, 2003 @06:08PM (#5468766) Homepage

    People can argue about the merits of this or that with product activation but the thing that really sucks here is the motivations and the way the law works. This is in effect a company touting for business saying "hey look we think a bunch of people could get cash here" its not that they have any real evidence of actual damage that was caused beyond people being a bit miffed.

    What sort of legal system allows Lawyers to start procedings before they have plantiffs ? No other industry works like this, and in fact almost no other countries legal system works like this. This is a sickening example of how law suits can be created just because a lawyer needs a new Ferrari, NOT because there is real evidence of damage.

    • Uhm ... you CANNOT file a lawsuit without plaintiffs! Duh! Where did you read there are no plaintiffs? The article simply says that other plaintiffs cannot join in because the lawsuit has not been certified as a class action. There, most definitely are plaintiffs. The only kind of legal action which does not require a plaintiff is a criminal case (and even there we, the citizens, are the plaintiff).

      As for your complaint about our legal system because it encourages a lawyer to file a lawsuit by rewarding them with profits ... I guess you must also be against capitalism. The only way this type of action can be brought is if there is a possibility of large profits for the lawyers. Do you think anyone is going to take on Intuit, MS and the like, spend a ton of money doing it and in the end only get the $39.99 paid for the product if they win? I don't think so.

      Our legal system is far from perfect and lends itself to abuse. But it also keeps businesses on their toes with the threat that if they abuse consumenrs, some lawyer is lurking around to make them pay. This terrible system does not seem to have kept us from having, by far, the strongest economy in the world. Perhaps you would prefer, like most other countries in the world, to leave it up to the government to enforce dconsummer protection laws. Good luck with that.
  • my experience (Score:5, Interesting)

    by sucko ( 257144 ) on Saturday March 08, 2003 @06:11PM (#5468779) Homepage
    This may be the last year I use TurboTax. Microsoft's Product Activation stuff has never given me any problems but TurboTax decided to crap out and need a new activation code. I've never uninstalled it, or moved it to another machine.

    It took 3 phone calls (800 number) to get someone to give me a new number. They take calls only M-F 8 to 5. The single time I reinstalled WinXP on a different machine I was able to talk to someone at MS in seconds at 3 in the morning. It was painless as it could be, given I had to read a 50 digit (!!) number to them. Intuit made this miserable process even more miserable.

    Fuck that. I'll use something else next year if they keep this crap up.
    • Re:my experience (Score:3, Interesting)

      by Gudlyf ( 544445 )
      It took 3 phone calls (800 number) to get someone to give me a new number.

      It took me one time using their on-line tech support chat applet to get a new number (only waiting about 1 minute for them to get to me). Then again, the reason I needed it was because I swear the damn software destroyed my laptop's boot blocks. I now have it installed on a POS system I have laying around so I can at least get my taxes done.

    • Wierd. That company must have really fucked itself in the past few years. I used to use Quicken 98, and one day (this was 2001 or so) after a reinstall I went out loking for any patches and such for it. Turns out, they didn't bother with making patches available but just put the latest version of Quicken 98 up for download. Abandonware after only 3 years. Guess they must have hired a gaggle of Microsoft managers.
  • by n3rd ( 111397 ) on Saturday March 08, 2003 @06:18PM (#5468811)
    When I strolled into Best Buy today I noticed a sign that read "Written copy of manufacturer's warranty available".

    Perhaps software companies should do the same. I would really like to see a copy of a EULA before I make a purchase. As I'm sure you all know once you open a product even before you can view the EULA it's too late, you can't take it back to the store.

    Going a step further, it would also be nice to know what kind of third party software is included with the software you are purchasing. This would include third party copy protection, spyware and other bundled programs.

    Hard copy or soft copy, this information should definately be available before the purchase. It is for almost everything else, why not software?
    • by WhaDaYaKnow ( 563683 ) on Saturday March 08, 2003 @06:55PM (#5468964)
      I would really like to see a copy of a EULA before I make a purchase

      I sure as hell don't. In fact I NEVER read EULAs anymore.

      Some argue that it's best to NOT read them, believing that they won't hold up in court because they are:
      (a) incomperhensible for the lay-man.
      (b) contain restictions or requirements that aren't legal.
      (c) unreasonably long and printed in unreadable UPPER CASE small fonts.
      (d) require an unjustified amount of effort to understand compared to the product provided (imagine that you'd have to read a similar agreement for every can of soda you bought).
      (e) agreeing to read them == agreeing to them (once you use the product).
      (f) I'm sure someone can come up with some even better argument.

      I can't imagine having to read 4 pages of non-understandable jibberish in a super small font, for every software product I use. It's just unreasonable. I would have to allocate a week a year to do just that.

      In any case, reading the EULA would have probably not had any impact on the purchase of Quicken software. I'm sure the legal babble didn't describe anything about writing to your boot sector (well it was really the mostly unused sectors after the MBR, but what the hell).

      I'm also sure that it already contains bs like you can only use it on one PC. They are not going to go in detail how they try to enforce it, in the EULA.

      So, no PLEASE don't make me read EULAs. ;)
  • by anon*127.0.0.1 ( 637224 ) <slashdot@@@baudkarma...com> on Saturday March 08, 2003 @06:19PM (#5468815) Journal
    The lawyers will get a few million dollars.

    The consumers who got screwed will probably get a coupon good for $5.00 off next years Turbotax, or something similarly useless.

    • Class action suits can be extremely damaging to companies. Fortunately, not everyone has your cynicism and if they did the alternatives would be to just bitch and moan and do nothing or hire a sole well-meaning lawyer who will work for free and promptly get chewed up by the defence's team of high priced lawyers.

      My brother is a lawyer and I saw first hand the amount of damage a small-class action suit can do to a corrupt municipal government. What really matters is damages and how they get metered out. There's no corporate death penalty and lawyers cost money, that's America. Just complaining about how useless the system is means you've already conceded defeat.

      If you think class-actions are useless ask yourself how big tobacco was knocked on its ear or why GOP politicians are always crying about limiting damages from class actions.

      Who mods this reactionary crap up?
      • Actually, the alternative I found was to return the product to the company, complain bitterly, and find some other software to do my taxes with. I don't need some legal firm out in California deciding to jump in and file a lawsuit for me.

        Yeah, class-action suits can be extremely damaging to companies. When they're filed on behalf of poor ot disadvantaged plaintiffs, they can even be a good thing. More often though, they're just an excuse for a law firm looking to line its own pockets. Legal teams for both sides haggle for a few months, then the consumer gets a coupon good for a few dollars off soem higher-priced product, or a token rebate. Meanwhile the lawyers on both sides pocket a few million dollars.

        Big tobacco knocked on its ear? Have you checked Phllip-Morris' stock price lately? Or seen their latest annual report?

    • The only class action suit benefit I ever received was a new floppy drive and $50 for my Toshiba laptop once. The terrible irony was that my floppy drive never had a problem. Letter came in the mail one day announcing that I was a winner.

      Every other settlement I'v been a class of was worthless. Like the Nationwide Life Insurance suit. "Ooo, we cheated you for 3 years, here half an extra $10,000 in life insurance on us"

      Please...you cheated me once, like I'm coming back to you.

  • by saskboy ( 600063 ) on Saturday March 08, 2003 @06:20PM (#5468819) Homepage Journal
    The really annoying part about this stuff is that kids who can file with their parents taxes according to the software, but don't have access to the same computer, can't share the software within the family anymore. I suppose this is what the software company is going for. It must be nice to have a monoply.
  • Hold on.... (Score:4, Funny)

    by Bobman1235 ( 191138 ) on Saturday March 08, 2003 @06:29PM (#5468858) Homepage
    We're supposed to PAY for that software? CRAP.
  • Where do I sign up? (Score:3, Interesting)

    by bizitch ( 546406 ) on Saturday March 08, 2003 @06:32PM (#5468870) Homepage
    I'll do anything to get back at those pricks for writing to my boot sector...including the enrichment of lawyers.
    • What the fuck is a piece of financial software doing even knowing that such things as 'boot sectors' even exist? It crunches numbers with dollar signs; since when does that require knowldege of file systems?
  • by Brian Stretch ( 5304 ) on Saturday March 08, 2003 @06:35PM (#5468889)
    is that we shouldn't need to buy a complex software package to figure out how much money the government is going to take out of our hides every year. Pass the Flat Tax [flattax.gov] and put Intuit and a helluva lot of accountants, lawyers, and lobbyists out of work.

    Though that still leaves Microsoft's product activation. Oh, right, I'm running Linux. Never mind.
    • You again.

      The thing that makes taxes complicated is not the graduated rates, it's figuring out how much taxable income you have in the first place.

      The flat tax schemes might make that a tad easier for the "average" taxpayer, but their main purpose is to make it a whole lot easier for the above average taxpayer by making much of their income exempt from taxation.

      Fair or simple - you only get (at most) one when it comes to tax laws
      • The thing that makes taxes complicated is not the graduated rates, it's figuring out how much taxable income you have in the first place.

        Graduated rates add complexity too. Look at all the journalists who got confused by the new 10% tax bracket. Most of them completely missed the point that folks at the bottom of the income scale who made enough to pay federal income taxes in the first place had their tax bills chopped by one third. Granted, the average old media journalist has the equivalent mathematical ability of a /. editor's grammatical ability, but the point stands.

        The flat tax schemes might make that a tad easier for the "average" taxpayer, but their main purpose is to make it a whole lot easier for the above average taxpayer by making much of their income exempt from taxation.

        Being able to do your taxes on a postcard rather than have people who couldn't figure out a frickin' butterfly ballot wade through the 1040 is a serious process simplification. The "rich" hire tax attorneys to do their taxes for them and find/write the necessary loopholes, paying appropriate sums of "campaign contributions" to Democrats if their inclined to pay protection money (or are masochistic), to Republicans if they're tired of being tax slaves, or some to each if they're completely gutless (your average Big Business executive). With the Flat Tax, the loopholes are gone. Subtract your personal and dependent deductions from your gross income and pay 17% of what's left, no matter how sharp your accountants are. BTW, it's working very well in Russia now (13% rate). It's pretty damn sad (for us) when a former KGB spook can implement a far saner tax code than America has.

        Besides saving $billions in wasted compliance costs, you'd get rid of tons of wasteful behavior. Businesses lease gear because it's tax efficient. Individuals load up on mortgage debt (artificially inflating housing costs) because it's a tax deduction. It's like teaching to a seriously dysfunctional test. Tax codes should balance behavior neutrality with practicality and raise just enough money to run the government. They should not be social engineering torture devices.

        Fair or simple - you only get (at most) one when it comes to tax laws

        And we have neither now. We can argue about fair forever, but we could have simple now.
  • by OS24Ever ( 245667 )
    Intuit knew that hundreds of people would buy their software, then turn around and give it to tons of their friends to do their taxes with it.

    They insert an activation key that tries to limit the number of returns the software does, and the number of machines it's installed on. They then botch the installation of said tools and make it very hard to remove/use until they release patch after patch.

    Yet, somehow, in these great United States, they now are getting sued for trying to protect the licensing agreement that no one reads and every just clicks 'agree' onto.

    What a great country we live in eh?
  • If CDs could not be perfectly copied then Intuit and other firms would not have to resort to this nonsense. They could just insist on using the program with the CD in the drive (like most other consumer software sold). But cheap CD copying - 50 cents or less - makes this scheme useless. I know this may not be politically correct in the Slashdot crowd, but how do you prevent software piracy without resorting to such draconian measures? Must you accept that for every copy of software sold that two will be pirated?
    • by blincoln ( 592401 ) on Saturday March 08, 2003 @08:03PM (#5469261) Homepage Journal
      Must you accept that for every copy of software sold that two will be pirated?

      Draconian copy proiection does nothing to solve this - it just punishes legitimate users.

      If you don't believe me, try going on Overnet (or eDonkey, Kazaa, etc.) and search for "turbo tax." I just turned up 13 hits for the full program, and about 60 hits for cracks for it.

      Software companies learned back in the 80s that extreme copy protection just drives buyers away. That's why games don't come with those ridiculous code wheels and text-lookups-in-the-instruction-manual protection schemes any more.
      • That's why games don't come with those ridiculous code wheels and text-lookups-in-the-instruction-manual protection schemes any more.

        The brings back some fairly interesting memories of hand-copying and hand-creating a fairly elaborate code-wheel to play a copy of a friend's game. Took me all d*mn day, but being ~15 or so at the time with no cash, it did let me play it without dropping $50 or so. (Think it was 'starflight' or some such.) Ironically, if they priced it lower than it was (say, $30), I would've bought a legit copy and not needed to go through that. Then the company'd have gotten a total of $60 as opposed to a total of $50 between my friend and I.
  • The old days (Score:5, Insightful)

    by mabu ( 178417 ) on Saturday March 08, 2003 @06:44PM (#5468918)
    I remember the old days...

    When if a product was well written and did its job, it would sell...

    You could put a whole application on a 3.5" disk.

    Printed manuals!

    When you didn't need copy protection and activation screens. Piracy was more-or-less a marketing tactic more than something that cut into sales (and IMO it still is, but the software publishers don't want the public to know this)

    Software companys generated revenue through customer loyalty (as opposed to customer extortion)

    One software product had the audacity to recognize that other competing/complimentary products from other publishers did exist, and openly supported import/export functions

    When most commercial software wasn't written in Pakastani or Indian programmer-warehouses.

    Tech support telephone numbers weren't systemmatically hidden in a maze of FAQs, if at all, and they were 800 numbers.

    You could install a software program without worrying if doing so would completely screw up your computer, other programs, or wipe out all your data.

    When a "newer version" actually meant more features and functionality.

    When the first version of a software package wasn't labelled "6.0"

    When software was designed to work with the hardware and RAM you had installed in your machine, and didn't require you to upgrade to next generation crap in order to operate acceptably. .... ahh the old days...
    • Re:The old days (Score:4, Insightful)

      by Izeickl ( 529058 ) on Saturday March 08, 2003 @07:36PM (#5469150) Homepage
      "When most commercial software wasn't written in Pakastani or Indian programmer-warehouses."

      Not arguing with your other statements, but with this one your trying to make it sound like a bad thing that there is some competition..If they didnt do the work, they would not get the contract..You have to compete in this global economy, its not handed to you on a plate in America any more!
      • Re:The old days (Score:4, Informative)

        by poofmeisterp ( 650750 ) on Saturday March 08, 2003 @10:19PM (#5469681) Journal
        BS.
        I finished a 1-year contract for a fortune 10 company who, of course, farmed all coding out to India. They turned out nothing but crap that rendered the appservers useless due to infinite loops, memory leaks, and a plethora of newb errors.
        As much money was spent on on-shore people to fix those problems as was spent on the bad code itself, but no one ever actually LEARNED from this and had the on-shore guys just DO the coding.
        God that pisses me off.
    • There, there, old-timer...

      /me brings up a rocking chair and some single-malt scotch.
    • Re:The old days (Score:3, Interesting)

      by MsGeek ( 162936 )
      I call BS.

      The golden age of copy prevention remains the mid-to-late 1980s. I remember very well the fact that the best selling program in 1987 for PCs was "Copy II PC" which was a software unprotect program. Wanna scare a person who was a Commodore 64 owner? Make "Kachunk! Kachunk!" noises at them. Why is that scary? Because there was a copy prevention scheme that caused the heads in a C64 floppy drive to bang around violently. Remember media with deliberately introduced physical flaws? Remember questions like "what is the word which is on page 1, line 5, word 17 of your software manual?" and you would have to answer them before you could get into your software?

      No, there was a reason why aggressive copy prevention died out around the end of the '80s. People didn't want it, and embraced alternative software without the copy prevention.

      It might take a while, but they'll learn their lesson. But wait for another 15 years or so, and someone will try it again. Such seems to be the cyclical nature of software companies and "piracy" paranoia.

      Oh yeah, another blast from the past for those other old farts who remember it: "Home Taping Is Killing Music!" "C30, C60, C90, Go!" Ha ha ha ha...
  • by dbc ( 135354 ) on Saturday March 08, 2003 @07:06PM (#5469011)
    OK, so suppose Intuit gets slapped down. Still doesn't stop other weasels from writing in the boot track. Does this tool exist:
    1. before install, make a backup of the boot track and checksum it.
    2. after install, checksum the boot track, and display diffs, if any.
    3. optional restore of the boot track.

    This allows us to get our old boot tracks back, and *still* get the fun of starting a righteous flame-war on SlashDot.

    Sorry if the answer to this is "yes, you clueless fool, go use tool __". But at least I'll get educated :-)
  • A lawsuit that actually makes sense? This can't be...better check the sources...
  • by dbc ( 135354 ) on Saturday March 08, 2003 @07:26PM (#5469101)
    TurboTax has the Windows(tm) logo flag. So, I take it they pass the "Designed for Windows" logo criteria.

    How in heaven's name could anything that writes the boot track earn the Windows logo? This cranky old software validation manager smells either cluelessness (MSFT) or cheating (Intuit) or some combination of the above.
  • You have to phone in to get a new activation key for each time you install Quicken XG. What is worse is that your license to use online banking or update is only good for 1 year and then you have to pay a fee to renew your subscription. If I had known that I would not have upgraded from Quicken 2002.
  • Although it was itself planning to use product activation next year, Block is now making anti-product activation the centerpiece of its marketing campaign for the remainder of the tax season

    I love it...

    ~SL
  • 1 - its none of their damned business that I bought their software. They have my $$, that is all the info they need.

    2 - I bought it, I shouldn't have to ask their permission to use it..
  • After an initial period in which Intuit service personnel required customers with product activation problems to ante up for another full-priced copy, Intuit is now bending over backward to resolve problems.

    Bending over backward for Intuit does seem appropariate, given how much they've had their customers bending over forward.

  • Why aren't they suing Intuit for QuickBooks, which requires an expensive subscription in order to continue to generate payroll checks after the first year?
  • by Nemus ( 639101 ) <astarchman@hotmail.com> on Saturday March 08, 2003 @08:37PM (#5469371) Journal

    Someone hand Intuit the K-Y Jelly and set up the webcam, its time to watch these guys get the screwing they so rightly deserve. My stepdad uses Turbotax on his aged PC, and when it crashed, and crashed hard, during the middle of the process, he ran into this problem. He tried to get everything straightened out, and when they told him of the fee, this man, who never cusses, used words I shall not repeat here. So he got the joy of spending six hours doing it by hand instead. I'm gonna call him and tell him about this right after this post.

  • VMWare (Score:5, Insightful)

    by NaDrew ( 561847 ) <nadrew@gmail.com> on Saturday March 08, 2003 @08:44PM (#5469392) Journal
    I installed TurboTax onto a clean Win2000 guest OS in VMWare. The only boot sector the activation routines got to touch was the one on the virtual drive. Oh, and after I installed TT (but before using it), I made a copy of the Win2000 guest OS file.
    So if I wanted, hypothetically, I could copy that VMWare file to any other machine and run it from there.
    I don't have any intention of copying or sharing the software. But it pisses me off that a) I had to take these measures to ensure the safety and stability of my real OS installation, and b) for all the possible danger to my machine if I'd installed it the normal way, it was trivial to circumvent.
    Good move guys.
  • ...TaxACT [taxact.com]. It is available in a number of different versions, and carries a guarantee that if you are charged penalties or too much tax as a result of a TaACT error, the company will refund everything. They claim that it is the only software with this guarantee.
  • Audit... (Score:2, Insightful)

    Maybe they should sue users dumb enough to buy the product after hearing about this activation scheme. In case you haven't been paying attention, the activation prevents you from printing old returns if you change your computer hardware. You're supposed to keep old returns for 7 years and NO ONE keeps the same computer configuration for that long. Therefore, electronic copies of your returns become unprintable (therefore unusable)... not my idea of smart.
  • by MichaelCrawford ( 610140 ) on Saturday March 08, 2003 @09:46PM (#5469568) Homepage Journal
    I own QuickBooks 99 and Quicken 2000, and I've purchased TurboTax for a couple tax years. Allow me to explain why I've stopped using TurboTax, and have never upgraded QuickBooks or Quicken.

    The whole time I've had anything to do with Intuit's products, they have been trying to nickel and dime me to death. I guess I'm smarter than the average Quicken user and anyway it pissed me off enough that I wasn't willing to give in.

    Let me count the ways.

    With the online banking available for Quicken and Quickbooks, there is a monthly fee. Web banking at all three of the banks I've used since the web has been around has been free.

    Quicken comes with tax tables that it will use to calculate payroll withholding, but the tax tables expire after a few months. To get updates to the tax tables, you have to pay for a subscription.

    But the information in the tax tables is made available for free by the IRS and each state tax agency, and in fact is printed and mailed to business owners each year at taxpayer expense.

    Yet there is no facility for manually entering the tax tables or importing tax table files that could reasonably be downloaded for free off the net.

    My business has only one employee (myself) so what I do is work out my withholding in a spreadsheet. I've found that doing the calculation this way helps me understand my taxes better when I'm deciding what to pay myself each time. Fortunately QuickBooks allows me to enter the withholding manually - I wouldn't be suprise if they remove that in the future.

    They're constantly trying to sell you preprinted checks and invoice forms. You should be able to print nice invoices from QuickBooks on an inkjet printer without using preprinted forms, but there is no facility for designing the invoices. So what I usually do is type up an invoice and email it to my clients; if they want a hardcopy I use a wordprocessor. That works out for me because I don't invoice clients very frequently - it wouldn't work for a retail store.

    If you reinstall Quickbooks after reinstalling your OS or move it to a new machine, you have to reactivate the product. My copy of Quickbooks doesn't have the horrible activation scheme this article is about, but what is a pain is that after activating it a couple times, you're told that the product is in use and it won't reactivate. You have to call tech support to get a code to reactivate it.

    Fortunately I now have this code written down so I can reactivate it myself. But you know, I paid for the product, I should be able to use it without registering it. They have my damn money.

    The last straw for me was that earlier this year, Intuit canceled support for QuickBooks 99's online banking. I got spammed with upgrade notices every time I logged on before this happened. After it happened I canceled my online banking and now I just use the web banking.

    I have come to the conclusion that online banking like Quicken and Quickbooks have is just not that good an idea. The whole time I've used both products I have had trouble with my accounts not balancing right. Now that I reconcile my accounts manually with my bank statements, and so am much more careful about it than the supposedly convenient online banking, I have been able to get my books to balance exactly.

    I used TurboTax a couple times. I didn't like it the first time I used it, but I used it a second year because I was out of the country and wanted to file online.

    First, I think it's pretty damn useless. To handle the schedule C, business income, it asks such meaningful questions as "enter your business expenses" - but you have to figure that out yourself without using turbotax. It's just as easy to enter it on a paper form.

    Last year my taxes were much more complicated because I now own a house and so am itemizing deductions, but I found that while doing my taxes by hand, without using software, I was able to claim a deduction that saved significant money. Turbotax would never have found that deduction.

    (What I did was have my corporation pay rent to me personally for rental of my home office. But I would have to pay taxes on the rental income. What I was able to do was to depreciate the portion of my home used for business purposes. The maximum depreciation allowed was the business income on the property - which was the total amount of the rent. So I was able to pay myself the home office rental tax-free, I won't have to pay taxes on the rent for decades. The IRS had no complaint about this. Turbotax wouldn't have been able to deal with it.)

    I just plain feel that it's wrong for a software publisher to require me to activate a product before I can use it, and so I will never knowingly purchase a software product that requires it. That means I'm never going to install Windows XP. Also I'm never going to install service pack 3 on my Win2k box, because of the EULA.

    Finally, I'd like to suggest that if any of you work for companies that have staff attorneys, that you suggest to the attorneys that they require attorney approval of EULAs before any software gets installed. If enough companies start doing that, the current nonsense that passes for a license agreement will get set straight pretty quick - imagine if General Motors wasn't willing to use Windows because their staff attorneys objected to the license agreement!

  • Maybe Intuit need a product called ion, then their users would be able to make better decisions about buying their software :)

    (for the slow people, Intuit ion) ;)
  • by gasp ( 128583 ) on Saturday March 08, 2003 @10:42PM (#5469746)
    A couple weeks ago I was shopping at my local grocery superstore and picked up a copy of TurboTax Basic from a display next to the service counter. I usually have one of those *block services prepare my taxes, and it usually costs $75 or more in fees. I really didn't put much thought into buying TurboTax. An hour later I fired up the Windows2000Pro laptop I have an slipped in the CD. The next 3 hours was an amazing lack of progress at getting the thing installed, and 3 support sessions with the company involving uncounted people on their end and a fun phone bill for me.

    The cause of my problems are the partition scheme of my laptop. The Windows2000Pro system C: partition is 900MB, just big enough for the OS and some temp files. The swapfile is on another larger partition, as are all third-party applications.

    The "Minimum System Requirements" on the box (a DVD-style clamshell) are easy to read through the shrinkwrap. To summarize the relevant parts, the OS list included Windows2000, the hard disk space specified 65MB and an additional 60MB if IE was not installed. IE 5.5 or higher was listed as being required to access online features, obtain product updates, and complete electronic filing. I read this before buying, and noted that my system meets all the requirements given on the box.

    On insertion, the CD autorun process kicked up a splash window, then an animated install menu window. I clicked the obvious choice to register and install, followed the prompts through selecting my type of network connection, filling out the registration info and getting to a window with a single button to "Install." Clicking the install button got me a window where the file copying process is obviously supposed to happen, but instead I get a standard alery window that informs me that there is insufficient space on the hard disk to install.

    Some notable things at this point: I have never been presented a EULA of any type. None of the windows I have progressed through have displayed a EULA, nor has there been any possible sequence of buttons that makes one appear. There is no EULA in the printed material inside the box. I have also not entered the CD key code anywhere in the process. There is no prompt for it anywhere up to this point, not even in the registration window where I entered my name/address/email type info. This becomes interesting in another hour or so when I'm on the phone with their support staff.

    I'm now at the point where the TurboTax installer will not proceed further because I do not have 191MB available on drive C:. I want to install on drive E: which has plenty of space, so I consulted the FAQ on the turbotaxsupport.com website. I didn't find anything applicable, so decided to consult a support staffer about the best way to make this happen. (They use a webchat interface to provice frontline support.) The live person on the other end directed me to the web FAQ with a set of steps for installing from hard disk instead of CD, involving simply copying the CD installer files to the HD. Doubtful, I tried it anyway, and was not surprised when the installer still stubbornly insisted that there was not enough space because it was only scanning the C: drive. I still had the webchat window open, which gave me an option to select that I was unsatisfied with the help I was given and offered me a chance to talk with a "senior" support staffer via webchat. I muttered "hell yes" and was shortly explaining the problem all over again to a new person. I was walked 4 times through the complete process, echoing the window headings and options at each step laboriously. None of the suggestions made were helpful, and few even made any sense at all. At one point I was even told that the only solution would be to uninstall and then reinstall. I reminded him politely that getting the product installed in the first place was the whole point of this exercise, and asked how I could possibly uninstall when nothing has been installed even once yet. I was then treated like a fencepost and told to find the TurboTax menu under Program Files from the Start menu, at which point I seriously wondered what problem the support staffer thought we were trying to fix. (Of course there was no entry under the start menu.) Finally after convincing him that the product was in fact not installed at all, not even a little bit, and could not be uninstalled, he gave up and provided me with a voice toll number and PIN. I asked for a toll free number but was told none exists. Ouch, since I was envisioning a lengthy call if my experience so far proved typical. I decided to take this as far as it goes.

    I had no problems getting to a live person quickly. He seemed to understand the nature of the problem and over the course of the next hour I had a pretty dizzy ride as I was asked the same questions repeatedly and he was consulting with an increasing number of people on his end. I had some pointed questions about the minimum requirements listed on the box, such as why the installer wanted 191MB in the first place, since the requirements plainly state 65MB. I was told that the higher amount was due to not having IE 6.0 installed. I pointed out that the IE requirement on the box stated 5.5 or higher, not that 6.0 was needed. I was told that was true, but if 6.0 is not present the installer will install it. I pointed out that the box said that only 60MB more was needed for IE if it was not present, which means a total of 125MB minimum requirement and asked why 66MB more than that was needed. I didn't get an answer to that. I asked him to confirm that IE 6.0 was required, contrary to what the box said. I was told that IE 6.0 is needed, but he stopped short of giving me an actual confirmation that the box was wrong. I asked him to confirm that the requirements on the box were wrong specifically regarding HD space and IE version, and he went on hold for a while. When he came back he asked me if I read the EULA, as all these facts were in the EULA. I told him I hadn't read the EULA and asked where I could find it, at the same time pointing out that it was irrelevant since I had no way to read system requirements prior to purchase other than on the outside of the box. He told me I must have seen the EULA, it was on the third window of the install process. I told him I didn't remember clicking past it, and by now I had gone through these steps many times. I did it again for him, step by step, this time saying "no EULA" after describing every window. When we got all the way to the diskspace alert, there had been no EULA presented. I pointed out that anything in the EULA couldn't possibly apply to me since it never made an appearance. He never mentioned the EULA again.

    At one point or another in the phone conversation I was told the following things, all of which turned out to be false:

    That I wasn't being presented all the installer windows because I didn't have IE 6.0 installed.
    That the EULA was presented on the third window and before the registration form.
    That it was possible to install my E: drive regardless of available space on C:

    The end result seemed to be that the installer scans the C: drive before offering an option to specify the location for installation, which they agreed was stupid. They insisted that after that space check there is a prompt that allows changing the installation location, but you can't get there if you don't have enough space for the entire installation on the C: drive. They also changed their minds about how the IE installer worked, and said that it offers a choice to not upgrade to IE 6.0, but obviously not before the space check. I have my doubts, since the disk space alert pops up at the beginning of the file copy process, with the progress bar ready to start counting files. I'm not sure where they are fitting in the choices for install location and options, but it sure doesn't seem to be before the initial file copy. This implies to me that it always needs 191MB on the C: drive to install, no matter what the environment is, which is still 66MB more than the requirements stated on the box. I hope it's not so, but I doubt I'll ever see for myself. I'm not repartitioning my system to accomodate a single proprietary tax program.

    I know my experience surely isn't typical. Most people have 200MB or more free on their C: drive. I just don't have the extra space to waste on my laptop for a Windows system partition, and this shouldn't be about how I partition my machine. There were several humorous points for me in the conversations, I think the funniest was when I was told by one of their "experts" to relabel my drives to swap E: and C: just for the install and then switch them back. I had to keep from laughing as I explained that I couldn't change the letter of a running system boot partition, and even if I could the system likely would die immediately and certainly wouldn't be bootable in that condition. Another funny one was the idea that "minimum system requirements" meant only those needed to run the application, but not to install it. Their argument was that the installer temporarily needs more than the minimum requirements during installation, but that the program would run fine with the listed requirements. I believe that is an unreasonable position.

    I was given an address to return the product for a refund and cut loose. I came away with several concerns, especially surrounding the EULA (or apparent lack of one) and the listed minimum system requirements, which are misleading at best and untruthful at worst. It's bad enough that a product requires you to buy it before you can read the EULA, and we're used to that. But for the CD-based installer to require you to register the product before you can even install it, and doesn't even show you the EULA until after it copies the product to your hard disk is pretty bad in my opinion. Perhaps I should count myself fortunate that I never got far enough to see the EULA.
  • by citking ( 551907 ) <jay.citking@net> on Saturday March 08, 2003 @11:33PM (#5469896) Homepage
    I skipped buying TurboTax this year because of the boot sector issue. And I still got hosed....

    As you may or may not know, the IRS was going to allow people who made lass than a certain amount of money in 2002 file for free on their website. Intuit complained, citing that they would take a monetary hit because of the loss of people who would otherwise use their software.

    So, an agreement of sorts was made: The IRS wouldn't have e-file on their website, but Intuit had to allow people who made less than $27,000 to file for free (see taxfreedom.com [taxfreedom.com]). So Intuit did this.

    However, here comes the catch: In order to continue your return without paying, you have to click on a small link back at the taxfreedom website. Instead, when people return to turbotax.com, you are greeted with the "Continue your return" link. And guess what? the second you log back in to check the status of your return, you are billed for $30+!

    Granted, Intuit does post a small piece of text on taxfreedom.com that states you must continue from this page, but how many people have actually done this? I feel like a fool for falling for Intuit's deception, so I won't be using their product anymore.

    It's just so sad that a company has to stoop to such low levels to make a profit these days.

  • Here my issue with tax software - I would do stuff by hand, I don't mind at all - the only reason I really use tax software is not so much any time savings (I think the savings is rather small overall) but instead that it lets me eFile.

    Does anyone remember form 1040PC? It was a fantastic form that provided a sort of compressed-text summary of your whole tax form on one sheet of paper, that was easy for the IRS to parse and was free to mail in, resulting in almost as quick a return as eFiling.

    What I want is a return of something as simple as the 1040PC, that would let me either mail or email a condensed version of my whole return.

    I believe the IRS was taking comments on a public eFiling system, but the comment period is closed now - there were a lot of comments from the tax preparers forecasting doom if the IRS let just ANYONE eFile without a fee, but there were some good letters of support. Just in case it makes any difference, please everyone write to the IRS and make a case for letting people eFile on their own, which should teach the idiot tax preparation industry a thing or two about treating customers like dirt and taking advantage of the whole US.

    A good place to start contacting the IRS would appear to be here [irs.gov], at the Taxpayer Advocate Service.

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