After receiving a large number of complaints from customers all around the country, the Federal Trade Commission (FTC) started action.
The United States government has filed a lawsuit against Adobe and two top executives of the company, alleging that they deceived customers by concealing early termination penalties and forcing them to jump through hoops in order to cancel their subscriptions to Adobe products.
Adobe is accused of misleading customers into purchasing its “annual paid monthly” subscription plan without providing appropriate disclosure that abandoning the plan within the first year could result in an early termination fee, according to the complaint that was submitted by the Department of Justice on Monday. Additionally, the complaint asserts that Adobe’s early termination fee disclosures were either buried at the bottom of the page or required customers to hover over extremely small icons in order to locate them.
Samuel Levine, director of the Federal Trade Commission’s Bureau of Consumer Protection, said in a statement that “Americans are tired of companies hiding the ball during subscription signup and then putting up roadblocks when they try to cancel.” The Federal Trade Commission will continue its efforts to safeguard American citizens from these unethical commercial behavior.
The general counsel and chief trust officer of Adobe, Dana Rao, stated that the business would take legal action against the Federal Trade Commission. Rao said the following in a statement that was posted on the website of the company: “Subscription services are convenient, flexible, and cost effective, allowing users to choose the plan that best fits their needs, timeline, and budget.” Our top objective is to make certain that each and every one of our clients has a pleasant experience. In addition to having a straightforward cancellation procedure, we are open and honest about the terms and conditions that are included in our subscription agreements. The claims made by the FTC will be refuted in court by us.
The Federal Trade Commission (FTC) announced that it had taken action against Adobe after receiving complaints from customers all around the country who claimed that they were unaware of the early termination fee that Adobe charges. According to the report, Adobe continued the practice despite being aware of the confusion that it caused among customers. According to the statement released by the Federal Trade Commission (FTC), any customers who attempted to cancel their Adobe membership by contacting Adobe’s customer support found further challenges, such as having their calls and chats dropped and being transferred to multiple personnel.
Following a wave of customer criticism over Adobe’s most recent terms of service, the Federal Trade Commission took action. Concerns were raised by users regarding Adobe’s use of ambiguous terminology, which gave the impression that the firm might freely exploit their work to train its synthetic intelligence systems. In response to the criticism, Adobe announced that it would be revising its terms of service in order to provide additional information regarding topics such as artificial intelligence and content ownership.