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2025-04-04 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >
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Shulou(Shulou.com)12/24 Report--
CTOnews.com, December 14 (Xinhua)-- the Federal Trade Commission (FTC) has begun an investigation into Adobe after consumers complained that it was "very difficult to cancel Adobe's subscription service."
According to Adobe's regulatory filings with the Securities and Exchange Commission (SEC), Tuyuan Pexels could face fines or other penalties, so revenue could be affected. CTOnews.com translated the original text as follows:
Since June 2022, we have been working with FTC staff to respond to a civil investigation request for information on disclosure and subscription cancellation related to the online Shopper confidence Restoration Act.
In November 2023, FTC staff claimed that they were ready to enter the negotiation stage to determine whether an investigation into these issues could be settled.
We believe that our approach is in line with the law and are currently in discussions with FTC staff. The defence or resolution of this issue may involve high fines and may have a significant impact on our financial results and operations.
In fact, this has always been a hot issue in FTC. As early as March, US regulators proposed a "click-and-cancel" rule, which clearly defines what companies should do.
According to FTC, users need a simple cancellation mechanism: if consumers can't opt out of their subscription plan at any time, then the "negative option" is just a way to continue to charge for products they no longer want.
To address this problem, FTC's proposed new rules require companies to "make it as easy to unsubscribe as to start a subscription", for example, if users can register online, they must be able to unsubscribe from the same site with the same steps.
In addition, FTC requires companies to provide users with "new requirements for reminders and confirmations", which simply requires sellers to send reminders to consumers before a subscription service is automatically renewed; TFC also requires sellers to obtain user consent when selling "additional offers" to consumers, and if the seller hears "No", it means he must immediately cancel the subsequent process.
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