The Federal Trade Commission (FTC) has filed a case against Adobe, accusing the company of deceptive practices related to its subscription services.
According to the FTC, Adobe violates the Restoring Online Shoppers’ Confidence Act. The commission highlights several key issues.
Firstly, Adobe describes its subscription plan as monthly but imposes cancellation fees when users want to cancel before the end of a year.
Additionally, Adobe places numerous obstacles in the cancellation process, often leading users to believe they have canceled their plan when monthly payments continue.
Adobe typically charges 50% of the remaining subscription payments as a cancellation fee. This practice may contribute to the rise in Adobe’s subscription service revenues from $7.7 billion in 2019 to $14.2 billion in 2023.
The FTC identifies two defendants from Adobe: Vice President Maninder Sawhney and Head of Digital Media David Wadhwani.
Adobe’s official response indicates that the company intends to fight the legal battle in court and denies the FTC’s allegations.
If found guilty by the Department of Justice, Adobe could face financial penalties and be required to refund customers who are forced to pay cancellation fees.
