Published in News

US regulators investigate Adobe’s cancellation rules

by on15 December 2023

The company claims it is cooperating

Adobe said US regulators are probing the company's cancellation rules for software subscriptions, an issue that has long hacked off its customers.

Adobe said the company has been cooperating with the Federal Trade Commission on a civil investigation since June 2022. A settlement could involve "significant monetary costs or penalties," the company warned.

Users of Adobe software, including Photoshop and Premiere, have long complained about the expense of cancelling a subscription, which can cost more than $700 annually for individuals. Subscribers must cancel within two weeks of buying a subscription to receive a full refund; otherwise, they incur a prorated penalty.

Some other digital services, such as Spotify and Netflix, don't charge a cancellation fee. Digital subscriptions have been a recent focus for the FTC. In March, it proposed a rule that consumers must be able to cancel subscriptions as quickly as they sign up for them.

President Joe Biden said in a social media post that companies were making it too difficult to unsubscribe from a service, wasting Americans' time and money on things they may not want or need.

Adobe said the FTC alerted the company in November that commission staff say "they had the authority to enter into consent negotiations to determine if a settlement regarding their investigation of these issues could be reached. We believe our practices comply with the law and are currently engaging in discussion with FTC staff."


Last modified on 15 December 2023
Rate this item
(2 votes)

Read more about: