Regulators are finally investigating how Adobe Creative Cloud cancels subscriptions, for imposing too many crazy rules on users



The Federal Trade Commission (FTC) is reportedly investigating how users can cancel their subscriptions to Adobe's Creative Cloud software.

Difficulty Canceling Adobe Subscriptions Under Fire From FTC - Bloomberg
https://www.bloomberg.com/news/articles/2023-12-13/difficulty-canceling-adobe-subscriptions-under-fire-from-ftc



Adobe Says Significant Costs, Penalties May Arise Out of FTC Investigation - MarketWatch
https://www.marketwatch.com/story/adobe-says-significant-costs-penalties-may-arise-out-of-ftc-investigation-5990ff37



To use Adobe's Photoshop, Premiere Pro, Illustrator, etc., you need to sign up for a monthly paid subscription to Creative Cloud. However, if you want to cancel this subscription plan, you must cancel within two weeks of purchasing the subscription to receive a full refund, and if you cancel later, you will have to pay a prorated fee.

There have also been reports that even if you try to cancel your contract, you are unable to do so immediately, and they try to prevent you from canceling by threatening to lower your fees.





It has also been reported that when you sign up for a Creatie Cloud trial, you agree to start a yearly contract, and if you later realize you have been banned and try to cancel, you are hit with a cancellation fee of around 20,000 yen.



Adobe's practices have led to a flood of customer complaints, prompting the FTC to launch an investigation. The FTC is proposing a rule in March 2023 that requires consumers to be able to cancel subscriptions as easily as they sign up for them. President Joe Biden posted, 'Too often, companies make it difficult for Americans to cancel their subscriptions, causing them to waste time and money on things they don't want or need.'



According to regulatory filings, Adobe has been working with the FTC since June 2022 to seek information about its practices to restore online customer trust. The FTC reportedly warned Adobe in November 2023 that it had the authority to enter into consent negotiations to determine whether a settlement can be reached regarding the investigation of these matters. Adobe, however, said it believes its actions comply with the law.

Adobe is also reportedly under investigation by US, EU and UK regulators for violating antitrust laws following its announcement that it would acquire design management tool Figma for $20 billion.

Adobe's $3 trillion acquisition of Figma is set to be sued by EU regulators for antitrust violations - GIGAZINE



Adobe reported its financial results for the fourth quarter of 2023 (September to November) and fiscal year 2023 on December 13, 2023. Total revenue for the fourth quarter of 2023 was $5.05 billion (approximately 718 billion yen), an increase of 12% from the same period last year, operating income (GAAP basis) was $1.74 billion (approximately 247 billion yen), and net income (GAAP basis) was $1.48 billion (approximately 210 billion yen). In addition, total revenue for the full year of 2023 was $19.41 billion (approximately 2.76 trillion yen), up 10% from the previous year. 'We achieved record revenue,' Adobe said.

Adobe Reports Record Q4 and Fiscal 2023 Revenue | Business Wire
https://www.businesswire.com/news/home/20231213946803/en/

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