Federal Trade Commission Sues Adobe over Deceptive Subscription Practices

https://icaro.icaromediagroup.com/system/images/photos/16264063/original/open-uri20240620-56-1kh7e1i?1718908372
ICARO Media Group
News
20/06/2024 18h31

In a move that has sparked widespread support from artists and digital creators, the Federal Trade Commission (FTC) has filed a lawsuit against software company Adobe and two of its executives for alleged deceptive practices. The suit claims that Adobe has been misleading consumers by imposing hidden early termination fees and creating numerous hurdles to cancel subscriptions.

The announcement of the lawsuit sent shockwaves through social media platforms and Discord servers as the creative community expressed their frustrations with Adobe's subscription model. Journalists and video essayists alike voiced their support for the FTC's action, with many proclaiming that Adobe had it coming for years.

The tensions between Adobe and its users have been building for months. Last September, Adobe announced price hikes for its subscription services, citing the need to cover the costs of integrating artificial intelligence. This decision, coupled with the consistent increase in subscription costs over the years, left many users dissatisfied.

Furthermore, concerns were raised when Adobe made updates to its terms of service earlier this month, granting the company the rights to use, reproduce, and modify user-generated creations uploaded to the Creative Cloud. This, combined with reports of Adobe's A.I. tools potentially training on output from other A.I. tools, led to speculation about the company pilfering user portfolios to train its A.I. offerings.

Former senior designer for Adobe, Kyle T. Webster, added to the growing discontent when he publicly announced his resignation, expressing his disconnection and discouragement with the company's evolving business model.

Despite Adobe's denial of training A.I. on user creations, the mid-month terms-of-service update has failed to quell the "Cancel Adobe" movement that has gained momentum within the creative community.

The latest FTC lawsuit accuses Adobe of failing to address frequent complaints from subscribers about the pricing and complexities of its subscription services. It suggests that Adobe's executives were aware of these grievances but failed to take appropriate action to assist customers.

While Adobe is unlikely to stray from its A.I. initiatives, such as incorporating apps from OpenAI and Runway, the company is now faced with the realization that its subscription model may be perceived as a form of consumer entrapment. This realization could tarnish its claims of transparency and truthfulness in its terms of service.

The outcome of the lawsuit remains uncertain, but it has undoubtedly brought the discontent with Adobe's subscription practices into the spotlight. With tens of thousands of netizens cheering on the FTC's crackdown, it seems that Adobe may be grappling with the "F Adobe" sentiments for the foreseeable future.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

Related