The complaint says the company hid fees and prevented consumers from canceling services.
The Federal Trade Commission (FTC) is taking action against Adobe and two executives for allegedly deceiving consumers about subscription plans. After 2012, Adobe shifted to a mainly subscription-based model, requiring recurring payments for popular software such as Photoshop and InDesign. These subscriptions generate most of the company’s revenue, with millions of paying customers worldwide.
In a complaint filed by the Justice Department, the FTC alleged that Adobe funneled customers towards an “annual paid monthly” plan on its website without clearly disclosing an early termination fee. If canceled within the first year, consumers faced a fee of 50 percent of remaining monthly payments, which could total hundreds of dollars. Adobe hid the details regarding this fee on its site in small print or icons. The company also made canceling difficult.
“Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Americans are tired of companies hiding the ball during subscription signup and then putting up roadblocks when they try to cancel. The FTC will continue working to protect Americans from these illegal business practices.”
As the Lord Leads, Pray with Us…
- For Director Levine to be led by the Lord as he oversees the Bureau of Consumer Protection at the FTC.
- For the members and chair of the commission to be prudent as they assess the business practices of various companies.
Sources: Federal Trade Commission
