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U.S. FTC Suing Adobe Over Hidden Fees and Subscription Model

By Laura Tucker
Ftc Sues Adobe Fees Subscriptions Featured 2

It’s easy to get fed up when you’re surprised with unannounced fees, as well as when you struggle to cancel a subscription to an app or service you no longer enjoy. This can even happen with major players: the U.S. Federal Trade Commission (FTC) has brought a lawsuit against Adobe for its hidden fees and subscription model.

Adobe Receives Heat for Fees and Subscriptions

The (FTC) has taken legal action against software giant Adobe, accusing the company of deceptive practices related to hidden fees and its subscription model. The lawsuit alleges that Adobe misled customers by failing to adequately disclose certain charges and locking them into long-term subscriptions without their informed consent.

According to the FTC’s complaint, Adobe didn’t clearly disclose important information regarding the pricing structure of its Creative Cloud subscription service. The FTC charges that the company misled customers by not disclosing that cancelling a subscription early would result in hefty cancellation fees. Additionally, Adobe is accused of automatically renewing annual subscriptions without providing customers with clear and timely cancellation options.

Ftc Sues Adobe Fees Subscriptions Photoshop
Image source: Unsplash

The lawsuit also highlights Adobe’s alleged failure to obtain proper consent from consumers before charging them for additional services or products. The FTC claims that Adobe engaged in deceptive practices by adding unauthorized charges to customers’ accounts and making it difficult for them to cancel or obtain refunds.

The subscription model employed by Adobe has faced criticism in recent years, with many customers expressing frustration over unexpected charges and difficulties in canceling. The company has also faced backlash for its customer service practices, including long wait times and unhelpful support.

FYI: check out this review of Recovery Toolbox to learn how to repair Adobe Illustrator files.

What Subscription Plan Has the FTC Fired Up?

In a separate blog post, the FTC called out the specific practices. It states that Adobe “steers” its customers toward the annual paid-monthly plan, making it a preselected default, while only showing the monthly cost. It doesn’t bother to explain that there is an “Early Termination Fee” in the first year. Customers will be charged 50 percent of the remaining payments.

The FTC also explains that when users try to cancel, they are put through a web of screens and clicks. When they resort to contacting a customer service rep, there are dropped calls, interruptions, and transfers. Anyone who has ever contacted ANY customer service understands that.

Ftc Sues Adobe Fees Subscriptions Lightroom
Image source: Unsplash

The first count in the complaint alleges that Adobe executives Maninder Sawhney and David Wadhwani violated the Restore Online Shoppers’ Confidence Act and the FTC Act by failing to disclose the terms of the subscription before collecting billing information.

Adobe’s Response to Lawsuit

In response to the FTC lawsuit, Adobe has expressed its commitment to resolving the issue and ensuring transparency for its customers. The company has stated that it will work closely with the FTC to address the concerns raised in the lawsuit and make necessary changes to improve its subscription practices.

The outcome of the lawsuit will have implications for Adobe, and possibly for the broader software industry as well. It should serve as a reminder for companies that even a company like Adobe can get dinged for deceptive subscription models.

There are many other software options than Adobe. Check out these Adobe Acrobat alternatives and Adobe Photoshop alternatives.

Image credit: Unsplash

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Laura Tucker Avatar
Laura Tucker
Laura has spent more than 20 years writing news, reviews, and op-eds, with the majority of those years as an editor as well. She has exclusively used Apple products for the past 35 years. In addition to writing and editing at MTE, she also runs the site’s sponsored review program.

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