The Federal Trade Commission sues Adobe, claiming that its subscription cancellation process is too difficult and deceptive
Since 2012, Adobe has offered its products as monthly subscriptions rather than one-time purchases, requiring users to pay a fixed amount each month to use Adobe's software. The Federal Trade Commission (FTC) has filed a lawsuit against Adobe, its Digital Media Division president David Wadhwani, and Adobe vice president Maninder Sawhney for violating the Restoring Consumer Confidence in Online Shopping Act (ROSCA).
FTC Takes Action Against Adobe and Executives for Hiding Fees, Preventing Consumers from Easily Cancelling Software Subscriptions | Federal Trade Commission
Complaint for Permanent Injunction, Monetary Judgment, Civil Penalty Judgment, and Other Relief (Public) - adobe_complaint.pdf
(PDF file) https://www.ftc.gov/system/files/ftc_gov/pdf/adobe_complaint.pdf
The difficulty of canceling Adobe subscriptions has long been a problem, and it was reported that the FTC began an investigation in December 2023.
Regulators finally launch investigation into how to cancel Adobe Creative Cloud subscriptions, forcing too many crazy rules on users - GIGAZINE
As a result of its investigation, the FTC unanimously decided to sue Adobe, and filed the complaint in the U.S. District Court for the Northern District of California on Monday, June 17.
The FTC's complaint reads as follows:
-Adobe fails to clearly and conspicuously disclose important terms and conditions of its annual monthly subscriptions.
-Adobe charges consumers' credit cards and other accounts without their explicit consent.
-Adobe doesn't offer an easy way for consumers to opt out of subscription charges.
- The defendants continued their illegal activities despite being aware of numerous complaints from consumers.
- Consumers have suffered substantial harm as a result of Defendants' violations of ROSCA.
For example, when you try to buy a license on Adobe, the recommended plan is the 'Annual Monthly' plan, which is a one-year subscription paid monthly, which is selected by default. Adobe prominently displays the monthly cost of the plan, but does not clearly state that there is an early termination fee of 50% of the remaining monthly payments if you cancel in the first year. Although it is stated in small letters on the website, consumers have to hover their mouse over a small icon to notice the early termination fee.
In addition, Adobe said that users had to navigate through numerous pages to cancel their Adobe subscriptions, and when they contacted customer service to cancel, the agents would hang up on them or send them to other agents, which could be interpreted as delaying their actions, the FTC said.
'Americans are tired of companies that hide the truth when they sign up for subscriptions and then put up roadblocks when they try to cancel,' said Samuel Levine, director of the FTC's Bureau of Consumer Protection. 'The FTC will continue to work to protect Americans from these unlawful business practices.'
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in Software, Web Service, Posted by log1i_yk