It is well known that once you subscribe to the Adobe package, going back can be more tedious than dealing with paperwork at the government office. Is this a tactic by Adobe to keep people paying for their services?
Well, now the FTC is investigating Adobe, following widespread consumer complaints that the company makes it too difficult to cancel app subscriptions.
Adobe was one of the first software companies to transition from a one-time purchase model to periodic subscriptions, but consumers have long complained that it is easier to start a subscription than to cancel it.
Adobe has revealed the investigation by the Federal Trade Commission (FTC) in a regulatory filing before the Securities and Exchange Commission (SEC).
The SEC requires companies to disclose any significant risk that may affect their profitability, in order to ensure that investors make informed decisions. Adobe disclosed the investigation, stating that it could face sanctions, other costs – and that its revenues could be affected.
Conditions required by the FTC for the future of subscriptions
This has been a hot topic for the FTC for some time. As early as March, the regulatory body proposed a “click to cancel” regulation, which outlined exactly what companies should do.
- A simple cancellation mechanism: if consumers cannot easily opt out of any program whenever they want, the negative option feature becomes nothing more than a way to keep charging them for products they no longer want. To solve this problem, the proposed rule would require companies to make canceling a subscription at least as easy as starting one. For example, if you can subscribe online, you should be able to cancel on the same website, in the same number of steps.
- New requirements before making additional offers: The proposed rule would allow sellers to present additional offers or modifications when a consumer tries to cancel their subscription. But before making those offers, sellers must ask consumers if they want to hear them. In other words, a seller must accept a “no” for an answer and, upon hearing it, must immediately initiate the cancellation process.
- New requirements on reminders and confirmations: The proposed rule requires sellers to send an annual reminder to consumers enrolled in negative option programs that do not include physical goods, before they automatically renew.
One tactic used by some companies is to interrupt the cancellation of a subscription with an offer intended to persuade you to change your mind. Typically, this would be a reduced subscription for a certain period of time, or the offer of a more limited level at a lower price.
The FTC says this should be allowed, but first consumers must be asked if they are interested in receiving any offers. If they say no, then the flow should proceed directly to cancellation.
Another problem that can affect Adobe is that consumers try a subscription and then forget to cancel it. With Adobe, you can only cancel within the first two weeks; otherwise, a proportional fee is charged.
In addition, Adobe does not send an annual subscription reminder, like other companies do, but the account is automatically renewed without prior notice. Undoubtedly, Adobe’s practices are among the most unfair and harmful to the consumer, hopefully they will change, even if they are forced by law.
