FTC (Federal Trade Commission) is launching a case in opposition to Adobe resulting from alleged deceptive practices associated to the corporate’s subscription companies. According to the FTC, Adobe violates the Restore Online Shoppers’ Confidence Act and the fee highlights a couple of key points.
Firstly, Adobe describes its subscription plan as month-to-month however fees cancellation charges when a consumer needs to cancel it sooner than one yr. Additionally, Adobe locations quite a few obstacles inside the cancellation course of, and infrequently, customers are led to consider they’ve cancelled the plan when, in actuality, month-to-month funds nonetheless happen.
Adobe normally fees 50% of the remaining subscription funds as a cancellation payment. This may very well be a part of the explanation why Adobe’s subscription companies income ballooned from $7.7 billion in 2019 to $14.2 billion in 2023.
FTC factors out two defendants from Adobe – the Vice President Maninder Sawhney and the President of Digital Media David Wadhwani.
Adobe’s official response states that it will search authorized battle in courtroom and denies FTC’s allegations.
If discovered responsible by the Department of Justice, Adobe could be topic to financial penalties and it must refund clients who had been pressured to pay a cancellation payment.
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