Adobe Sued by FTC Over Hidden Fees, Cancellation Issues

Federal Trade Commission (FTC) takes action against Photoshop parent company Adobe (ADBE) and two of its executives for allegedly hiding early termination fees and making it difficult for consumers to cancel their subscriptions.

Adobe pushed its customers to subscribe to “annual and monthly” plans without properly disclosing that they would be required to pay an early termination fee – which is 50% of the remaining monthly payments – if they canceled during their term. first year, the FTC said in its report. complaint.

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“Adobe trapped its customers into year-long subscriptions through hidden early cancellation fees and numerous barriers to cancellation,” said Samuel Levine, director of the Federal Trade Commission’s Bureau of Consumer Protection, in the press release. “Americans are tired of companies hiding the ball when signing up for a subscription, then throwing up obstacles when trying to cancel. The FTC will continue to work to protect Americans from these illegal business practices.”

Adobe said it would refute the FTC’s claims in court. “Subscription services are convenient, flexible and cost-effective to allow users to choose the plan that best fits their needs, schedule and budget,” said Dana Rao, general counsel and chief trust officer at Adobe, in a press release. “Our priority is to always ensure our customers have a positive experience. We are transparent about the terms and conditions of our subscription contracts and have a simple cancellation process.”