Adobe’s cancellation policy cost it $150 million
Critics express frustration over the inability to purchase the software, as the only way to access popular tools is through a recurring subscription.
Adobe has agreed to settle a lawsuit over its cancellation policy, paying a $75 million fine and $75 million worth of free software. A dispute over the fine print of cancellation fees, and making it too difficult for customers to cancel subscriptions.
The complaint alleges that Adobe’s annual subscription plan committed people to a year without clearly stating so. Additionally, the early termination fee was apparently hidden in “fine print and unnoticeable links” and only became apparent when the subscriber tried to cancel.
According to IBT, an Adobe executive described the early termination fee as “a bit like heroin for Adobe,” saying they had come to rely on it as a source of revenue.
The nature of the cancellation process was also in dispute, with the government saying it was deliberately complicated and full of “unnecessary steps, delays, unsolicited offers and warnings”.
So what’s next? Well, Adobe is now required to clearly state early termination fees when someone signs up, send a reminder to customers who are about to switch from a free trial to a subscription if that subscription has an early termination fee, and provide an easy way to cancel.
Adobe said in a statement: “While we disagree with the government’s allegations and deny any wrongdoing, we are pleased to resolve this matter. We have agreed to provide $75 million worth of free services to eligible customers.”
“We will proactively reach out to the affected customers once the appropriate filings with the Court are made and accepted. Additionally, we have agreed to a $75 million payment to the Department of Justice.”
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