FTC Alleges Adobe Deters Cancellation and Hides Early Termination Fees

THE Federal Trade Commission (FTC) takes action against Adobe and two of its executives, alleging that they deceived consumers by hiding an early termination fee on a subscription plan and making it difficult for customers to cancel their subscriptions.

The agency’s federal court complaint names Adobe; the president of the company’s digital media business, David Wadhwani; and one of its vice-presidents, Maninder Sawhneythe FTC said in a Monday, June 17 statement. Press release.

“Adobe trapped its customers into one-year subscriptions with hidden early cancellation fees and numerous barriers to cancellation” Samuel Levinedirector of the FTC’s Bureau of Consumer Protection, said in the release.

Adobe released a statement On Monday, he said he would refute the FTC’s claims in court.

“Subscription services are convenient, flexible and profitable to allow users to choose the plan that best suits their needs, schedule And budget,” Dana RaoGeneral Counsel And director of trust at Adobe, said in the release. “Our priority is to always guarantee our customers a positive experience. We are transparent about the terms and conditions of our subscription contracts and have a simple cancellation process. We will refute the FTC’s claims in court.”

The FTC said in its statement that consumers have complained about being unaware of Adobe’s early termination fee (ETF), which amounts to 50% of the remaining monthly payments when a consumer cancels during his first year.

Consumers also said they were unaware that the company’s “annual paid monthly” plan required their subscription to continue for a year, according to the release.

While Adobe prominently displays the “monthly” cost of the plan during registration on the website, it “burys” the ETF information in small print or requires consumers to hover over small icons to find it , the FTC said in the press release.

The agency’s complaint also alleges that Adobe’s cancellation processes are designed to make cancellation difficult and require consumers to navigate through multiple pages. For cancel, and they encounter resistance and delays from Adobe representatives if they contact customer service, per the release.

The complaint accuses Adobe’s practices of violating Restoring Online Shopper Confidence Actaccording to the press release.

In another recent action citing this act, the FTC filed a complaint against a bill payment company. doxo in April, alleging that the company misleads consumers and pins on unwanted charges.

In a statement released at the time, doxo said the FTC’s investigation “is inaccurate and unfair, pushing a narrative that is a monumental step backwards from the goal of reducing the complexity and costs of paying bills.”