'Early termination fees are like heroin to Adobe, and if they are eliminated, the company will suffer,' Adobe executive said
In a lawsuit filed by the Federal Trade Commission (FTC) against Adobe for failing to prominently display early termination fees and provide simple instructions for canceling, an Adobe executive said that early termination fees were like heroin to Adobe and that there was 'no way to eliminate or make them transparent without damaging our business.'
Adobe exec compared Creative Cloud cancellation fees to 'heroin' - The Verge
Adobe Exec Says Early Termination Fees Are 'Like Heroin' for the Company | PetaPixel
https://petapixel.com/2024/07/25/adobe-exec-says-early-termination-fees-are-like-heroin-for-the-company/
Adobe was sued by the FTC for 'illegal business practices' including making it difficult for customers to understand the existence of early cancellation fees when canceling subscriptions and for making the process itself too complicated.
FTC sues Adobe for misleading its users about its difficult to cancel subscriptions - GIGAZINE
The Verge reported that in the unredacted copy of the FTC complaint, an Adobe executive was quoted as saying that early termination fees were 'like heroin to Adobe.'
In addition to this statement, the lawsuit also reveals that Adobe was internally aware of research findings that showed customers were unhappy with difficult cancellation processes and early termination fees.
Adobe's general counsel and chief trust officer, Dana Rao, commented on the FTC's complaint and the citations of executives in it, saying, 'We're disappointed that they're taking comments from rank-and-file employees from years ago and taking them out of context. We provided the FTC with tens of thousands of documents that were historical comments about everything about our subscription business. They found this statement in there and included it in the complaint, even though it had nothing to do with this case.'
According to Rao, the person who made the comment does not report to CEO Shantanu Narayen and is not in a position to decide whether to impose early termination fees.
Rao also told The Verge that the early termination fee amounts to less than 0.5% of Adobe's annual revenue and is not a driver of Adobe's business or related to business decision-making.
Regarding clarifying early termination fees, Rao said, 'It's not easy because it depends on how much time is left on a customer's contract.'
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in Software, Web Application, Posted by logc_nt