Security News > 2024 > June > FTC files complaint against Adobe for deceptive cancellation practices
The Federal Trade Commission 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.
Defendants Sawhney, Senior Vice President of Digital Go To Market & Sales at Adobe, and Wadhwani, President of Digital Media Business at Adobe, are accused of knowing about these violations yet continuing the same unlawful practices.
FTC says the first violation in the enrollment process occurs even before a user attempts cancellation, as Adobe allegedly hides the details of the "Annual Paid Monthly" subscription plan, including the early termination fee.
"According to the complaint, when consumers purchase a subscription through the company's website, Adobe pushes consumers to its"annual paid monthly" subscription plan, pre-selecting it as a default," reads a press statement from the FTC. "Adobe prominently shows the plan's"monthly" cost during enrollment, but it buries the early termination fee and its amount, which is 50 percent of the remaining monthly payments when a consumer cancels in their first year.
FTC has received multiple reports of people alleging that despite going through the cancellation process, Adobe continued to charge them.
The complaint filed by the FTC at the U.S. District Court of the Northern District of California asks the court to impose several forms of relief against Adobe and its two executes.