FTC Sues Adobe for Concealing Fees and Complicating Subscription Cancellations
Money | June 17, 2024, 5:04 p.m.
The Federal Trade Commission has filed a lawsuit against Adobe and two executives for allegedly concealing early termination fees on their popular subscription service, making it challenging for customers to cancel. The FTC claims that Adobe fails to adequately disclose the fees, which can amount to hundreds of dollars, and forces customers to endure unnecessary obstacles when trying to cancel. The regulator stated that Adobe shifted primarily to a subscription model after 2012, leading to most of its revenue coming from subscriptions. FTC Director, Samuel Levine, accused Adobe of trapping customers into long-term subscriptions through hidden fees and cancelation hurdles. In response, Adobe's general counsel, Dana Rao, stated that they will dispute the FTC's claims in court and emphasized the company's commitment to transparent subscription terms and a simple cancellation process.