FTC Investigates Adobe Cancellation Rules Among Subscribers

Adobe disclosed that the Federal Trade Commission (FTC) is currently focusing on the company's rules on its digital subscriptions to its services.

Adobe Subscribers Complain on Difficult Cancellation

Users of Adobo programs like Photoshop and Premiere have been complaining about the cancellation rules of the company. Subscribers are supposed to cancel within two weeks of purchasing the subscription to receive a full refund.

If the user fails to meet the required time, Adobe gives a prorated penalty. Some individuals have experienced shouldering the cancellation expense of more than $700 annually. Other subscription-based companies like Spotify and Netflix do not charge a cancellation fee.

"Too often, companies make it difficult to unsubscribe from a service, wasting Americans' time and money on things they may not want or need," President Joe Biden expressed in a social media post.

FTC Wants Easier Cancellation Process for Subscriptions

Earlier this year, the FTC proposed that consumers should be able to cancel their subscriptions as easily as they sign up for them, hinting at abolishing the difficult cancellation process that forces services to customers.

Recently, the FTC notified Adobe that "they had the authority to enter into consent negotiations to determine if a settlement regarding their investigation of these issues could be reached." Since 2022, the company has been cooperating with the commission on a civil investigation.

A settlement could be done through "significant monetary costs or penalties," as per the company and the Wednesday filing. Currently, the company is also in negotiation with the UK regulators for the Figma acquisition.