An ongoing FTC investigation reveals that Adobe may face hefty fines associated with its overly difficult and expensive subscription cancellations.
At its quarterly financial conference, Adobe told investors that the company has been engaging with the FTC since June 2022, and that the FTC believes Adobe may have violated the Restore Shopper Confidence Act.
Adobe said in a statement: "We have been engaging with FTC staff and regarding our disclosures and subscription cancellations**.
There has long been a scrutiny of Adobe's approach to subscriptions, and in particular more attention has been paid to how it handles cancellations. Unless potential users read the fine print, it's easy to fall into the trap of expensive paying.
When a user subscribes to something provided by Adobe, they have three payment options: pay monthly;Paid annually (paid monthly);One-time payment on an annual basis. Here's what each option means.
Paid monthly subscriptions: This is the most expensive option, and Adobe's monthly subscriptions are usually twice as expensive as other subscription options. However, if the user needs to cancel the subscription, Adobe does not charge a fee.
Paid annually subscription (paid monthly): Typically half of the standard monthly paid subscription, Adobe allows users to subscribe annually and pay monthly. However, if you cancel your subscription, Adobe will charge 50% of the remaining contract amount as a fee.
Paid annually subscription (one-time payment): Users can also choose to pay for the service for a full year at once. While this also has advantages, such as preventing unexpected charges, Adobe warns users that this plan will not be refunded after the first 14 days.
Regulators are cracking down on companies with unclear subscription charges. It's important to note that the FTC wants to make it easier to cancel your subscription on any** and ease the burden on customers who no longer need to use a service.
Currently, there is a lack of uniformity in the subscription cancellation process. As a result, customers may need to go through a lengthy and complicated cancellation process, or call ** or visit the company in person to cancel the service. The FTC is working to standardize these processes and make them more user-friendly.