Last Updated on 06/18/2024 by Chris Gampat
Dear photographers who’ve wanted to get rid of subscriptions, we have some news for you. Adobe, the company—which has troubled you with its problematic subscription model and outrageous early termination fee (ETF)—is finally getting sued by the US Federal Trade Commission (FTC). How did this Adobe legal case occur? Let us give you a breakdown.
Why is Adobe Being Sued?
Since 2022, the FTC has been scrutinizing Adobe’s abhorrent cancellation fees, and despite being aware of the investigation, the tech giant refused to change its policies. Then, on 17th June, FTC finally lodged a lawsuit against Maninder Sawhney, Adobe’s Senior Vice President of Digital Go To Mark and Sales at Adobe, and David Wadhwani, Adobe’s President of Digital Media Business, stating that Adobe didn’t disclose the ETF to its consumers, thereby “trapping” them in a deal they did not want to continue. (Adobe’s subscription model is available for photographers, editors, and artists for Photoshop, Premiere Pro, Acrobat Pro, InDesign, Lightroom, and more.)
Per the complaint, Adobe is accused of pushing users for its “annual paid monthly” plan and pre-selecting it as a default. All of this without revealing that if the plan is cancelled in the first year, subscribers are charged “hundreds of dollars”. Interestingly, this nefarious practice was carried through burying ETF charges in “small print” on the company’s website or requiring customers “to hover over small icons to find the disclosures”.
Now imagine if you finally decide to cancel your plan, Adobe would ensure that the whole process becomes more cumbersome, said FTC. For instance, users are “forced to navigate numerous pages” or “encounter resistance and delay from Adobe representatives.” As a result, photographers—especially those who work round the clock—would carry on, then waste their precious free time on such a lengthy, pesky process.
The Adobe Legal Case: Adobe Has to Pay You
But, by the grace of God, if you manage to pull through the agony and cancel your plans, you will still be charged. FTC noted that Adobe “continued to charge” consumers who believed to have cancelled their plans until they discovered that were charged “on their credit card statements”. The lawsuit called Adobe’s practices an “ambush” and a violation of “the Restore Online Shoppers’ Confidence Act,” which helps to stop deceptive e-commerce practices.
If this is not good enough news, then this part will make your day: Adobe has to pay you. According to reports, the FTC is asking the California district court to ensure that the company concludes its problematic practices and pay civil penalties and monetary relief to those affected. It means that you, dear photographer, stand a chance to earn back what you lost all those years ago. (Perhaps, even buy new equipment if you have been wronged.) It is an excellent way to reprimand a company that has been looting the hard-earned money of photographers and visual artists, especially those who work on a project-to-project basis.
Now, about the bad part: Adobe downright declined its wrongdoings. In a statement by Dana Rao, Adobe’s General Counsel and Chief Trust Officer, he reiterated that they have been “transparent with the terms and conditions” and that their subscription contract and cancellation process is “simple.” Moreover, Adobe will also “refute the FTC’s claims in court.”
While we don’t know the future, we can rest assured that Adobe’s downfall is around, with the lawsuit being a step in the right direction. To paint a bigger picture, Adobe’s subscription model (introduced in 2012) hit an all-time revenue high of $5.31 billion last year, a sharp 10% increase from 2022. Moreover, the entire fiscal year’s revenue has been predicted to reach between $21.4 billion to $21.5 billion. That’s a mammoth profit (most likely generated from deceiving customers). And so it makes sense that Adobe refunds the money they have gathered by ensnaring you. That’s the best (and the right) way out of this dilemma.
If you’re looking for an alternative, know that the Phoblographer has been using Capture One for years. Consider it. Granted, Capture One has a subscription as well.