FTC Sues Adobe Over Hidden Cancellation Fees and Manipulative Sign-Ups

The Federal Trade Commission (FTC) has filed a lawsuit against Adobe, alleging that the software giant engages in deceptive practices regarding its subscription services. The FTC claims that Adobe utilizes a number of tactics to make it difficult for users to cancel subscriptions, including hidden cancellation fees and misleading sign-up processes. Specifically, the FTC points to a $20 cancellation fee that Adobe charges even if users cancel within their free trial period. This fee is not disclosed during the sign-up process, which the FTC argues is a deceptive practice. Additionally, the FTC alleges that Adobe's sign-up process is designed to trick users into signing up for recurring subscriptions without their full understanding. For instance, the sign-up process often emphasizes the free trial period while downplaying the fact that a paid subscription will automatically begin at the end of the trial. The FTC's lawsuit also criticizes Adobe for using dark patterns, manipulative interfaces that aim to steer users towards making certain choices without their full awareness. These dark patterns, the FTC argues, make it difficult for users to understand the terms and conditions of Adobe's subscriptions and to opt out of them. The FTC's lawsuit seeks to stop Adobe from engaging in these deceptive practices and to require the company to refund any illegally collected fees. The lawsuit alleges that Adobe's actions violate the FTC Act, which prohibits unfair and deceptive business practices. Adobe has not yet responded to the FTC's lawsuit. The company may choose to settle the lawsuit or fight it in court.

Summary

"The FTC's lawsuit against Adobe highlights the increasing scrutiny that subscription services are facing. The agency is alleging that Adobe has engaged in deceptive practices to make money off of its users, and is seeking to put a stop to these practices. This lawsuit could have significant implications for the subscription model and how companies market their products."