Adobe is under fire from the FTC for its opaque cancellation penalty policy, which , according to the regulator, is a consequence of the company’s dependence on this source of income.
Conflict between Adobe and FTC
Accusations of lack of transparency
The US Federal Trade Commission (FTC) accuses Adobe of not sufficiently informing customers about billing policies and penalties for early termination of subscriptions. While this information may be available on the company's website, the FTC says it is not provided when you sign up for a subscription.
FTC Position
The regulator says Adobe management is aware that incomplete disclosure of annual payment plans is misleading consumers misleading and harmful to them. However, the company continues this practice because more detailed information to customers could negatively impact subscription revenue.
Internal Confessions
FTC filings quote an Adobe executive comparing hidden early termination penalties (ETFs) with "heroin for Adobe". According to this statement, the company cannot eliminate ETFs or make them more visible without a significant impact on the business.
Adobe Response
The company publicly denies the FTC's allegations. One anonymous Adobe executive suggested the federal agency was collecting inflammatory material to support a baseless lawsuit. He also noted that the author of the heroin comparison is not a member of the company's senior management.
Glossary
- Adobe is an American company that develops graphic design software and web development and other creative fields.
- FTC (Federal Trade Commission) - The US Federal Trade Commission, a government agency responsible for protecting consumer rights and monitoring compliance with antitrust laws.
- ETF (Early Termination Fee) - a penalty for early termination of a contract, applied by companies when a client cancels a subscription before the agreed date.
- The Register is a British online publication specializing in news from the world of technology and the IT industry.
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Answers to questions
What are the FTC's claims against Adobe?
Why does Adobe continue to use this practice despite accusations?
How is Adobe responding to FTC charges?
What does it say about comparing fines to heroin?
What consequences could this conflict have for Adobe?
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Discussion of the topic – Adobe and heroin addiction: the scandalous comparison of subscriptions with drugs
Adobe is accused by the FTC of using hidden penalties for canceling subscriptions, which has been compared to drug addiction. The Company acknowledges its dependence on this profit model.
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Isabella
Wow! It seems Adobe is in serious trouble with the FTC. I wonder how this will affect their subscriptions in the future? 🤔
Hans
Yes, Isabella, the situation is unpleasant. I have been using their products for a long time, but this behavior of the company is disappointing. Maybe it's time to look for alternatives? 🤷♂️
Amélie
Hans, I thought about that too! I've heard of Affinity Designer and Photo as worthy replacements. Has anyone tried it? Maybe this is a chance for competitors?
Carlos
Guys, I think the FTC is going a little overboard. Yes, Adobe could be more transparent, but shouldn't we read the terms and conditions before subscribing? 🧐
Giuseppe
All this hype about Adobe is a waste of time. It used to be better when you just bought the program once and for all. These subscriptions of yours are evil. And in general, everything new is from the evil one.
Isabella
Giuseppe, I understand your dissatisfaction, but progress cannot be stopped. Subscriptions provide access to constant updates. Although I agree that companies should be more honest with customers. 💁♀️
Katarzyna
I'm wondering how this will affect the industry as a whole? Maybe other companies will start revising their policies to avoid similar problems? 🤓
Oleksandr
Katarzyna, great idea! I think this could be a push for more transparency in the subscription space. And perhaps new creative monetization models will emerge. We will monitor developments! 👀