FTC sues Adobe for difficult subscription cancellations

Adobe (ADBE) is facing new legal challenges after the Federal Trade Commission (FTC) brought a lawsuit against the software company. The FTC alleges Adobe is in violation of consumer protection laws due to the difficulty surrounding its subscription cancellation process.

Yahoo Finance's Market Domination highlights the specifics of the lawsuit.

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This post was written by Angel Smith

Video Transcript

Adobe being sued by the FTC now alleging the software company violated consumer protection laws by making it too difficult for consumers to cancel their subscriptions.

In response, Adobe saying our priority is to always ensure our customers have a positive experience.

We are transparent with the terms and conditions of our subscription agreements and have a simple cancellation process.

We will refute the ftc's claims court.

So we get a fight in our hands.

Julie Bloomberg.

Uh by the way, does Cite Bloomberg cites an FTC official saying Adobe trapped customers into year long subscriptions to hidden early termination fees and numerous cancellation hurdles.

But you heard Adobe's response, they're clearly putting up a fight and going to court on this one.

Yeah, I mean, we've all had the experience of having a hard time canceling subscriptions for various things and there are rules in place to try to prove prevent that from happening.

Um I saw one report that if you have the suite of apps uh that Adobe Photoshop et cetera, $700 is around the cost that you can incur.

And according to the FTC complaint, it has to at least partly to do with when you cancel.

In other words, if you don't, can, if you sign up and you don't cancel within a certain period of time, then you can get sort of a prorated penalty.

You can't get out of it easily.

Again, that is what the FTC is alleging here.

It was a 2010 consumer protection law that set the parameters for all of this that was designed to protect online shoppers.

And I, I had read that actually, Doby had disclosed late last year the F DC was investigating subscription practices.

So, you know, not a huge surprise here, I think for the street.

Right.

Exactly.

Although we don't always know what the outcome of this is and now we know in this case what they're going ahead to try to do.