Senate Commerce Committee Ranking Member Ted Cruz, R-TX, is lauding a recent decision from software giant Intuit on a reversal of its policy that had forbade gun manufacturers and sellers from using certain services from the company.
The services in question surround the usage of QuickBooks, a tool for small businesses to assist with accounting and financial information, that is developed by Intuit.
A spokesperson with Intuit commenting on the change in policy telling FOX Business, "Intuit continually reviews and updates our policies to ensure they best serve the needs of our customers and remain compliant with all applicable federal and state laws. Our Acceptable Use Policy is based on various factors, including compliance with laws and banking partner requirements. Our commitment to customers is unwavering, and we will continue to ensure our policies serve their needs."
The reversal comes in the wake of an oversight investigation launched by staff of Cruz on the Commerce Committee into business practices from the software company.
In a letter to Intuit CEO Sasan Goodarzi, exclusively obtained by Fox Business, Cruz described the QuickBooks policy, which was in effect until August 1st, 2023, that said businesses engaged in "guns and firearms manufacturing…[are]…ineligible (or may become ineligible)" for QuickBooks’ payroll services.
A similar policy was also apparently in effect for businesses engaged in "mail order, phone, or online … firearms and weapons sales."
In the letter, Cruz wrote, "My office became aware of these discriminatory policies when Dawson Precision, a Texas company that manufactures small firearm parts, informed my office that Intuit had, without warning, cancelled its subscription to QuickBooks payroll services."
"Dawson Precision only discovered what had happened after it submitted payroll…Intuit later said that it cancelled Dawson Precision’s account because, as a firearm manufacturer, it was in violation of Intuit’s acceptable use policy," Cruz added.
As a result of the incident, according to the letter, Dawson Precision was forced to print paper checks "for weeks" while searching for another vendor to handle payroll.
Cruz, however, did not lay blame entirely at the feet of Intuit, instead alleging that one of the company’s banking partners – JPMorgan – had "demanded that Intuit create and enforce bank policies regarding firearm sellers and manufacturers."
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Commerce Committee staff, upon hearing of these revelations from Intuit, then held a briefing with both banks where JPMorgan acknowledged being the source of the services policy.
When reached for comment by FOX Business, a spokesperson for JPMorgan said, "For any third party processors that process payments in aggregate, we are unable to perform the due diligence expected by regulators for several highly-regulated industries, including internet firearms retailers, so we cannot process such payments for these processors. Any such merchants can look to work directly with us rather than through a third party processor. We do allow payments to be processed through these processors for brick and mortar firearms retailers."
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Following the August policy change, there is now no current mention of prohibitions on payroll and payment process for gun companies.
Cruz in the letter, while satisfied with the outcome, said his staff would nevertheless "continue their investigation to ensure that no financial services firm unnecessarily limits the firearm industry’s access to accounting or banking products."
Concluding his letter to Goodarzi, he penned, "As a result of my staff’s investigation, Intuit did the right thing regarding its payroll and payment services. I encourage other companies to follow your company’s lead and take note that banning customers from using their products due to political differences is not good business."
