Subj : Adobe executive called software cancellation fees "heroin" for th
To   : All
From : TechnologyDaily
Date : Fri Jul 26 2024 13:45:04

Adobe executive called software cancellation fees "heroin" for the company, 
FTC says

Date:
Fri, 26 Jul 2024 12:36:59 +0000

Description:
Adobe has been criticized for likening its early termination fees to heroin, 
but Adobe hits back.

FULL STORY
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Adobes controversial billing practices and punitive fees for early 
subscription termination have been likened to heroin for the company by an 
executive, an unredacted FTC filing has claimed. 

The FTCs lawsuit alleges Adobes inadequate disclosures about its annual 
plans, which are paid monthly, harm and mislead consumers, who are often 
unaware of the significant early termination fees. 

The Federal Trade Commission also suggests that fewer consumers would 
subscribe to Adobes suite of creativity apps if it were more transparent 
about its subscription fees. Adobe slated for its early termination feesagain 

The complaint reveals an Adobe executive admitted the hidden fees are 
essential to the companys revenue model, despite their potential to mislead 
customers. 

As one [unnamed] Adobe executive admitted, the hidden [early termination fee] 
is a bit like heroin for Adobe and there is absolutely no way to kill off 
[early termination fee] or talk about it more obviously [without] taking a 
big business hit, the document states. 

In response, Adobe disputes the FTCs allegations, arguing the agency 
cherry-picks material to support its case. The executive who made the heroin 
comparison is not part of Adobes leadership team, according a company 
representative. 

General Counsel and Chief Trust Officer Dana Rao emphasized the minor 
financial impact of early termination fees on Adobes revenue, representing 
less than 0.5% globally. 

Although the software company may list details of the early termination fee 
on its site, the FTCs lawsuit alleges that the information is not clearly 
available during the signup process. 

Adobe reportedly plans to challenge the FTCs claims in court  TechRadar Pro 
has asked the company to comment on the case, but we did not receive an 
immediate response. More from TechRadar Pro The US government is suing Adobe 
over hidden contract changes and fees trapping customers Weve rounded up a 
list of the best productivity apps and online collaboration tools After 
something cheaper? Here are the best Photoshop alternatives



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Link to news story:
https://www.techradar.com/pro/adobe-executive-called-software-cancellation-fee
s-heroin-for-the-company-ftc-says


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