June 18, 2024 at 11:25AM
The Federal Trade Commission filed a complaint against Adobe and two executives for deceptive practices related to subscription plans. Allegations include failure to clearly disclose terms and a complex cancellation process. FTC seeks relief through permanent injunction, penalties, refunds for consumers, and changes in contract terms. Adobe previously faced criticism for data usage language. No response from Adobe about the FTC’s action.
Meeting Notes Summary:
The Federal Trade Commission (FTC) has filed a complaint in US federal court against Adobe and two executives, Maninder Sawhney and David Wadhwani, for deceptive practices related to their subscription plans. The complaint includes violations of the Restore Online Shoppers’ Confidence Act (ROSCA) and accuses the executives of knowing about these violations and continuing the unlawful practices.
The FTC alleges that Adobe hides details of its “Annual Paid Monthly” subscription plan, including the early termination fee (ETF), making the cancellation process complex and designed to deter consumers from canceling their subscriptions. The FTC requests several forms of relief against Adobe and its executives, including permanent injunction, monetary civil penalties, equitable monetary relief, disgorgement of ill-gotten money, and rescission or reformation of existing contracts.
In addition, Adobe has recently faced criticism for language in its terms of use, leading the company to change the language to better explain how customer data would be used and confirm that it would not be used for AI purposes. BleepingComputer has reached out to Adobe for a statement but has not received a response at the time of publication.