Adobe playing it odd: deceptive practices shall land them in trouble!

The FTC (Federal Trade Commission) is pursuing a case against Adobe for allegedly engaging in deceptive practices related to its subscription services

Adobe is accused of violating the users’ Confidence Act. The main issues highlighted by the FTC include monthly Subscription Misrepresentation: it’s markets its subscription plans as monthly but charges cancellation fees if users cancel earlier than one year. Obstacles in Cancellation: Users face difficulties in cancelling their subscriptions and often believe they have successfully cancelled when monthly payments continue. Adobe typically charges 50% of the remaining subscription payments as a cancellation fee. This practice has contributed to it’s significant revenue growth in its subscription services, from $7.7 billion in 2019 to $14.2 billion in 2023.

The FTC has named two defendants from Adobe: Maninder Sawhney (Vice President) and David Wadhwani (President of Digital Media). Adobe has responded by stating that it will contest the allegations in court and denies the FTC’s claims. If found guilty by the Department of Justice (DOJ), it could face monetary Penalties, customer restitution, and having to refund customers who were charged cancellation fees. The outcome will depend on the DOJ’s findings and any subsequent legal proceedings. Adobe’s reputation and customer trust could be impacted by the resolution of this case. In summary, it is facing legal action from the FTC over allegations of deceptive practices in its subscription services. The case will proceed through legal channels, and the ultimate outcome will determine the penalties, if any, that it will face.