It would seem like the United States Federal Trade Commission has everyone on the target list as of late. Next up, the FTC has filed a lawsuit against Adobe for alleged subscription practices. The FTC announced today that they believe Adobe doesn’t do a good job of displaying its termination fees to consumers. While the company has made most of its revenue from its subscription model, the wording on the signup page isn’t always clear. Using terms like annual paid monthly, software users are charged monthly but are expected to keep the subscription active and paid for twelve consecutive months or face the termination fee.
The problem is users usually find out about the termination fee on the cancelation page. Some fees can be relatively high depending on what’s subscribed to.
“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.”
The Better Business Bureau also says they have received consumer complaints concerning these subscription practices. The FTC claims canceling the subscriptions isn’t always easy or obvious for consumers.
“Consumers complain to the FTC and the Better Business Bureau about the ETF, according to the complaint. These consumers report they were not aware of the existence of the ETF or that the “annual paid monthly” plan required their subscription to continue for a year. The complaint notes that Adobe has been aware of consumers’ confusion about the ETF.”
It’s alleged that when consumers reach out to Adobe to cancel, they are faced with unnecessary resistance and even drop calls and chats. Some consumers even thought they had successfully canceled their subscriptions, only to find out they had been charged the next month.
