ALBAWABA - Adobe is under investigation by the US Federal Trade Commission and the Department of Justice over allegations that it has been highly difficult for customers to cancel their subscriptions for Adobe’s Creative Cloud membership.
The probe is currently prompted by a burst of consumer complaints over company subscription policies that have been far more stringent than many other online services, including those of Spotify and Netflix, Yahoo reports.
Back in 2012, Adobe did much the same when it switched over to monthly or yearly subscription pricing for Photoshop, Illustrator, InDesign, and a myriad of other creative tools. Ever since then, tons of creatives have been bitching about Adobe's subscription model—the one they know they must continue using in order to keep working.
The lawsuit alleges that Adobe “hides” its monthly and yearly subscription details in the “fine print and behind optional textboxes and hyperlinks”. In so doing, the lawsuit says the company fails to properly disclose the early termination fee the company charges when canceling, which “can amount to hundreds of dollars.”
As 9to5Mac notes, what the Competition Authority is most investigating is whether the practice by Adobe complies with ROSCA, which mandates that any company make clear information about an auto-renewal, along with easing a cancel process. The FTC's probe follows a more extensive push by the agency to hold digital subscription services to better offer cancellation options.
Adobe disclosed the existence of this investigation in a regulatory filing, which warns that it could face heavy penalties if it's found to be out of compliance. The company is considering admitting the practices as legal but is first engaging with the FTC in frontline discussions. The financial impact, however, could be significant, likely to impact Adobe's bottom line and operations.
