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ARTICLE · 23 JULY 2024

FTC Takes Action Against Adobe For Unfair Subscription Practices

Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
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Frankfurt Kurnit Klein & Selz PC

Frankfurt Kurnit Klein & Selz PC

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The Federal Trade Commission announced an action against Adobe and two of its executives, Maninder Sawhney and David Wadhwani, alleging deceptive practices regarding Adobe's subscription services in violation of the Restore Online Shoppers' Confidence Act.

United StatesMedia, Telecoms, IT, Entertainment

The Federal Trade Commission announced an action against Adobe and two of its executives, Maninder Sawhney and David Wadhwani, alleging deceptive practices regarding Adobe's subscription services in violation of the Restore Online Shoppers' Confidence Act. According to the FTC, Adobe deceived consumers through hidden early termination fees and numerous cancellation hurdles.

The complaint, filed by the Department of Justice upon notification and referral from the FTC, asserts that Adobe steered consumers toward its "Annual, Paid Monthly" subscription plan (which happens to be its most lucrative), including by pre-selecting it as a default option in enrollment flows, and failed to disclose material terms of the plan. Such material terms included the existence and amount of the plan's early termination fee, which could cost consumers hundreds of dollars if the subscription was canceled within the first year. These disclosures were allegedly buried on the

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This post first appeared in Frankfurt Kurnit's Focus on the Data blog (www.focusonthedata.com). It provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

Originally published by the New York Legal Ethics Reporter

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

www.fkks.com

This alert provides general coverage of its subject area. We provide it with the understanding that Frankfurt Kurnit Klein & Selz is not engaged herein in rendering legal advice, and shall not be liable for any damages resulting from any error, inaccuracy, or omission. Our attorneys practice law only in jurisdictions in which they are properly authorized to do so. We do not seek to represent clients in other jurisdictions.

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