Adobe’s controversial cancellation policy under FTC investigation
Adobe could face severe fines after it was revealed that the Federal Trade Commission (FTC) is conducting an ongoing investigation into the company's cancellation policies. Users claim that Adobe's unsubscribing process is overly complicated and includes unfair additional fees, leading the FTC to issue a subpoena to the brand in June 2022.
From Photoshop to Firefly, Adobe's creative cloud remains a favourite among creatives of all kinds. Transparency is integral to its relationship with investors and customers alike, and Adobe claims that its practices abide by the law despite consumer experiences stating otherwise.
In an SEC filing, Adobe disclosed to investors that it was being investigated for a potential breach of the Restore Online Shoppers’ Confidence Act, which prevents online retailers from making uninformed charges without the party's consent. Adobe have been criticised in the past for its convoluted cancellation system which often involves customers having to call the company to cancel subscriptions and even potentially pay a termination fee.
With its' Click to Cancel' concept, the FTC has been cracking down on online subscription protocol, attempting to make cancellation systems fair and universal across online retailers. Adobe breaches this in several ways, particularly through its lack of reminders for annual subscription holders and a 2-week cancellation policy, which will charge the recipient a sizable fee if unattended to.
Frustrated users took to X to share their frustration over Adobe's cancellation policies, with one user calling it a "joke" after they were asked to pay a $115 early cancellation fee. For students and creatives, the fee can be a tough financial blow, with another user calling it a "Greedy and ridiculous" concept.
As the investigation continues, this controversy is one of several headaches for Adobe after recent copyright infringement claims against AI Adobe Stock images surfaced online. For more on the future of Adobe, check out the latest tool announcements from Adobe MAX – from the sounds of it, we're in for an influx of AI (for better or for worse).
