Adobe and two of its executives were the subject of a lawsuit filed by the United States Federal Trade Commission (FTC) on Thursday, June 13. The legal action claims that the Photoshop creator concealed early termination fees on its most popular subscription, making it impossible for users to cancel.
Failure to Provide Sufficient Details About Cancellation Fees
In its complaint, the federal authority said that Adobe failed to provide sufficient information on the costs, as reported by Fox Business. These fees are determined as half of the remaining payments if clients quit within the first year, which may easily reach hundreds of dollars, the FTC said.
Moreover, Adobe has been accused of making users who want to cancel their subscriptions online navigate an unnecessary maze of pages. Customers who try to cancel over the phone report frequent disconnections, repeated requests to explain themselves to different agents, and "resistance and delay" from those agents.
Samuel Levine, director of the FTC's Bureau of Consumer Protection, said in a news release: "Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles."
Adobe to Contest Allegations in Court
Dana Rao, Adobe's chief trust officer and general counsel, told Fox Business that the firm would contest the FTC's allegations in court.
He pointed out in a statement that subscribers may pick the best subscription plan for them in terms of cost, convenience, timeliness, and flexibility. According to him, they offer an easy cancellation procedure and are upfront about the details of their subscription agreements.
Adobe reportedly shifted its business strategy to rely on subscriptions after 2012. Subscriptions now account for the majority of the company's income.
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