Adobe sued for subscription fraud

According to Neowin , in a press release about the lawsuit, the FTC said that Adobe has earned the majority of its revenue from subscriptions for over a decade. However, the FTC claims that the software company is trying to push customers to sign up for what it calls "annual monthly payments" plans. Each month, the customer's credit card or bank account will have to pay for the plan, but it has to pay for the entire package for 1 year.

Adobe faces a series of accusations from the FTC

Not only that, the FTC alleges that when customers try to cancel their Adobe plans before the end of their one-year term, the terms require them to pay high early termination fees, up to 50% of their monthly payments for the remaining months. More notably, the FTC alleges that these terms are displayed in small print on Adobe's website or require customers to hover over small icons to learn more.

The FTC said it had received complaints about this situation from many customers, saying Adobe was aware of the complaints but continued with this subscription structure and hid early termination fees.

Additionally, the FTC claims that Adobe makes it very difficult for customers to cancel their subscriptions. The agency states: "When customers attempt to cancel their subscriptions on the company's website, they are forced to navigate multiple pages to cancel. When they contact Adobe's customer service department to cancel, they encounter resistance and delays from Adobe representatives. Customers also encounter other obstacles, such as dropped calls and chats, as well as multiple wire transfers. Some customers who have successfully canceled their subscriptions report that the company continues to charge them until they discover the charges on their credit card statements."

According to the FTC, Adobe's actions violate the "Restoring Confidence in Online Shopping Act " in the US. In addition to the company, the lawsuit names two Adobe executives. One is Senior Vice President of Digital Marketing and Sales Maninder Sawhney. The other is President of Digital Media Business David Wadhwani.

Adobe has not yet responded to the lawsuit.

Source: https://thanhnien.vn/adobe-bi-kien-vi-hanh-vi-lua-dao-trong-goi-dang-ky-185240618174137304.htm