Adobe’s addiction to cancellation fees
In June, the FTC sued Adobe for hindering its users from canceling their subscriptions and hiding the details about hefty cancellation fees for its Creative Cloud software subscription service. The Verge reports that this week, an unredacted complaint was filed in the case, revealing a quote from an Adobe executive that the FTC claims supports the charge that the company knew the cancellation fees were generating large revenues.
The complaint says that an unnamed Adobe executive admitted that the early termination fees (ETFs) were “a bit like heroin for Adobe” and “there is absolutely no way to kill off ETF or talk about it more obviously [without] taking a big business hit.”
Adobe executives disputed the significance of the quote, and told The Verge that they may challenge the suit’s validity now that the Supreme Court has overturned the “Chevron doctrine,” which gave federal agencies wide leeway in deciding how to apply loosely defined regulations.
The complaint says that an unnamed Adobe executive admitted that the early termination fees (ETFs) were “a bit like heroin for Adobe” and “there is absolutely no way to kill off ETF or talk about it more obviously [without] taking a big business hit.”
Adobe executives disputed the significance of the quote, and told The Verge that they may challenge the suit’s validity now that the Supreme Court has overturned the “Chevron doctrine,” which gave federal agencies wide leeway in deciding how to apply loosely defined regulations.
