This is exactly why TurboTax had a class action lawsuit filed against them, a few years back. Without admitting fault, of course, they paid it.
The lawsuit (and you can probably still find it on the internet) in short, claimed TurboTax was charging taxpayers for filing returns they claimed would be filed for free. (i.e. federal form 1040) Then, they would charge them for Deluxe or even Premium.
You'll have to read the revised ToS regarding arbitration to determine if they have filled in their self-created, profit generating loophole.
