The Federal Trade Commission (FTC) has filed a complaint in US federal court against Adobe and two executives, Maninder Sawhney and David Wadhwani, for deceptive practices related to their subscription plans.
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The allegations against the software giant and its executives include violations of the Restoring Online Shoppers Confidence Act (ROSCA) for failing to clearly disclose important terms, while also failing to provide a simple cancellation mechanism.
Defendants Sawhney, Senior Vice President of Digital Go To Market & Sales at Adobe, and Wadhwani, President of Digital Media Business at Adobe, are accused of knowing about these violations, but continuing the same illegal practices.
The FTC says the first violation in the sign-up process occurs even before a user attempts to cancel, as Adobe allegedly hides the details of its “ Annual Paid Monthly ” (APM) subscription plan , including the early termination fee (ETF).
" According to the complaint, when consumers purchase a subscription through the company's website, Adobe pushes the "Annual Paid Monthly" subscription plan to consumers as the default ," the FTC said in a press release
Adobe's ETF disclosures are buried on the company's website in small print or require consumers to hover over small icons to find them.
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When trying to cancel an subscription , the FTC says the process is complicated and designed to discourage consumers from canceling their subscriptions. To make matters worse, the FTC alleges that Adobe customer service intentionally thwarted attempts, leading to continued billing.
According to the FTC complaint, Adobe customers must first locate their account management page, click on “Manage Plan” among several similar options, such as “Edit Billing & Payment,” and press the “Cancel Your Plan” button. However, this does not cancel their subscription.
Instead, they are forced to re-enter their password, even if they are already logged in, and then taken to a mandatory comments page to provide reasons for their cancellation. This page prominently displays the early termination fee in red font, almost as a deterrent.
If users attempt to cancel by contacting Adobe customer service, the FTC alleges that calls and conversations are often dropped or disconnected, and consumers are transferred between multiple representatives who ask for all the information from the beginning.
Prior to the complaint, the FTC had received numerous reports from individuals claiming that despite the cancellation process, Adobe continued to bill them.
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Adobe Inc. is a multinational computer software company widely recognized for its innovative contributions to digital media and creativity tools. It has developed an extensive suite of software products, such as Photoshop, Illustrator , and Premiere Pro, which are essential in the fields of graphic design, video editing, and visual effects. The company's commitment to advancing technology is also evident in the development of the Portable Document Format (PDF), which has become a global standard for sharing and printing documents. Adobe's continuous evolution and adaptation to digital trends ensure that it remains a leader in the software industry, empowering creators and businesses around the world.
Source: bleepingcomputer
