After hundreds of complaints of people tired of how game were played with them, the FTC acts. How many other companies play the same games. I can name 6 right now if we weren’t going to be sued. But we all have been through it. Companies make you jump through a maze just to cancel.
The Federal Trade Commission (FTC) has filed a lawsuit against Adobe and two of its executives, alleging that the company obscures early termination fees associated with its most popular subscriptions and complicates the cancellation process for customers.
FTC takes action against Adobe and executives for hiding fees, preventing consumers from easily cancelling software subscriptions: https://t.co/tJ7J3tLxc4 /1
— FTC (@FTC) June 17, 2024
The FTC’s complaint outlines that Adobe fails to clearly disclose the early termination fees, which amount to 50% of the remaining balance if a customer cancels within the first year. These fees can accumulate to hundreds of dollars, posing a significant financial burden.
Additionally, the complaint highlights the difficulties faced by subscribers attempting to cancel their services online, which involves navigating through several pages. Customers who opt to cancel over the phone often experience disconnections, have to speak to multiple representatives, and face delays and resistance during the process.
The FTC emphasized that since Adobe shifted primarily to a subscription-based model for its products post-2012, a significant portion of its revenue now stems from these subscriptions. The regulator criticized Adobe for entrapping customers with hidden fees and creating barriers to cancellation.
US sues Adobe for ‘deceiving’ subscriptions that are too hard to cancel https://t.co/u1XxV7xZ5P
— The Verge (@verge) June 17, 2024
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, stated, “Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles. Americans are tired of companies hiding the ball during subscription signup and then putting up roadblocks when they try to cancel.”
In response, Adobe’s general counsel and Chief Trust Officer, Dana Rao, defended the company’s practices. Rao asserted that Adobe’s subscription services offer convenience, flexibility, and cost-effectiveness, allowing customers to select the plan that best suits their needs, timelines, and budgets. Rao emphasized Adobe’s commitment to transparency regarding the terms and conditions of its subscriptions and described the cancellation process as straightforward. He affirmed that the company would contest the FTC’s claims in court.
🇺🇸US SUES ADOBE OVER HIDDEN FEES
The US government sued Adobe for hiding early termination fees and complicating subscription cancellations.
The DOJ claims Adobe pushed its “annual paid monthly” plan without clearly disclosing these fees.
FTC’s Samuel Levine:
“Americans are… pic.twitter.com/lfHmkDq1UZ
— Mario Nawfal (@MarioNawfal) June 17, 2024
The legal battle highlights a growing tension between consumer protection efforts and business practices in the digital subscription economy, where terms of service and cancellation policies are often points of contention. Adobe remains steadfast in its defense, asserting that it prioritizes positive customer experiences and clarity in its subscription agreements.
Major Points:
- The FTC has filed a lawsuit against Adobe, accusing it of not disclosing early termination fees for subscriptions.
- Adobe allegedly charges a cancellation fee of 50% of the remaining balance if a subscription is canceled within the first year.
- The FTC claims Adobe makes the cancellation process difficult, requiring multiple steps online and presenting obstacles over the phone.
- Adobe shifted to a subscription-based model primarily after 2012, with most revenue now coming from these subscriptions.
- Adobe’s general counsel disputes the allegations, asserting that the company provides clear terms and a simple cancellation process.
Kirk Volo – Reprinted with permission of Whatfinger News
