Adobe risks significant fines from the FTC for difficult subscription cancellations
In light of the ongoing Federal Trade Commission probe, Adobe might face hefty fines due to its complex and high-cost subscriptions. For its quarterly financial call, Adobe told the investors that they have been cooperating with FTC since June 2022. However, the FTC believes that the platform might violate the Restore Online Shoppers’ Confidentiality Act.
In a statement observed by the street journal, Adobe stated, “We have been cooperating with and engaging in discussion with the FTC staff regarding our disclosure and subscription cancellation practices.” Adobe claims that it thinks its procedures adhere to the law.
Adobe has always been accused of the way it handles subscriptions. Cancelling their subscriptions is even more difficult to do. There’s always a high chance of getting trapped in an expensive situation if you don’t read potential subscribers carefully.
For a subscription offer, Adobe offers three packages: a monthly subscription, an annual subscription, or an annual subscription paid upfront. In the event of a subscription cancellation, Adobe doesn’t charge a fee.
- A monthly subscription is the most expensive option of all, as this subscription costs twice as much as the other subscription options. Although, in case of any cancellation, Adobe charges no fee.
- Annual subscription that is paid on a monthly basis. It’s about half of your monthly subscription price that allows users to acquire a yearly subscription while paying for it on a monthly basis.
- Annual subscription that gets users to pay for yearly subscriptions. Although it comes with its advantages that protect users from getting any surprise bills. Although there is no payback included after 14 days of subscription,.
Regulators are taking strong action against businesses that use ambiguous subscription policies. Notably, the FTC seeks to lessen the burden on clients who may decide they no longer want to use a service by facilitating the cancellation of subscriptions anywhere on the internet.
The process for canceling subscriptions is currently inconsistent. As a result, to cancel a service, clients may have to go through drawn-out and difficult cancellation procedures, contact the business, or come in person. The FTC is attempting to standardize these processes to improve their customer-friendliness.
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