Adobe's hard-to-cancel subscriptions are now being investigated by the Federal Trade Commission. This was confirmed by the American computer software giant itself, saying that U.S. regulators are probing its subscription cancellation rules.
On Wednesday, Dec. 13, Adobe Inc. said in its official regulatory filing with the SEC (Securities and Exchange Commission) that it has been cooperating with FTC officials on a civil investigation since June 2022.
In the old days, Adobe was considered one of the earliest software giants to offer a one-time purchase model. However, after years gone by, it decided to transition to recurring subscriptions, which are really hard to cancel.
Adobe's Hard-to-Cancel Subscriptions Now Investigated by FTC
According to 9To5Mac's latest report, hard-to-cancel Adobe subscriptions have been a headache for many users, leading to complaints for the past few years.
Among the programs that Adobe users have been complaining about are Photoshop and Premiere, which cost over $700 yearly for individual subscribers.
Fortune reported that hard-to-cancel subscriptions of Adobe and other companies have been the main focus for FTC officials in the past few months. In March, the U.S. watchdog even proposed a rule that requires tech firms to offer subscription services that can be canceled as easily as they sign up.
"Too often, companies make it difficult to unsubscribe from a service, wasting Americans' time and money on things they may not want or need," said U.S. President Joe Biden during that month.
Now, FTC is further pushing its investigation. This was confirmed by Adobe, saying that the U.S. regulators alerted it in November that they had the authority to enter into consent negotiations.
The software giant explained that FTC wanted to do this to determine if a settlement in their investigation of the subscription cancellation issues could be achieved.
However, Adobe claimed that its subscription services comply with the law.
"We believe our practices comply with the law and are currently engaging in discussion with FTC staff," said Adobe.
What FTC Wants Adobe To Do
In FTC's "click to cancel" regulations, the U.S. regulatory agency said that it wants Adobe and other companies offering subscription services to do the following:
- Businesses should make subscription services easy to cancel right from the start.
- Before pitching additional subscription offers to users, companies need to ask for their consent to hear the offer first.
- Businesses should provide annual reminders to subscribers in negative option programs.
As of writing, FTC and Adobe haven't reached a settlement for the subscription cancellation issues being investigated. But, the software giant said the settlement will likely include significant monetary penalties or costs.
If you want to learn more about the ongoing FTC investigation against Adobe's subscription business, you can click this link.
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