The UK Competition and Markets Authority said it would investigate Adobe over concerns that early cancellation fees on certain subscription products could violate consumer protection law.
Customers who cancel more than 14 days after signing up for Adobe’s “annual billed monthly” plan must pay half of the remaining yearly cost for the plan, and will have access to the product for the remainder of that month’s billing period, the CMA noted.
The investigation is to look into whether the terms are unfair and if customers are given clear and timely information upfront about the early cancellation fees, which are likely to influence their purchase.
Widely used software
Adobe’s Photoshop, Illustrator, Premiere, InDesign and other products are widely used in the creative industries.
The CMA’s executive director for consumer protection, Emma Cochrane, said the probe would look into “whether Adobe customers are getting a fair deal“.
The investigation is the ninth the CMA has launched under new direct consumer enforcement powers, which give it the ability to determine whether consumer law has been breached, and to take action such as securing redress for consumers and imposing fines, without going through the courts.
US settlement
The probe could result in the finding of unlawful conduct, the imposition of remedies, or the closure of the case.
A week ago, Adobe reached a $150 million (£112m) settlement to resolve a US government lawsuit accusing it of causing consumer harm by concealing termination fees and making it difficult to cancel subscriptions.
Following that order last Friday, Adobe said it has made its sign-up and cancellation processes more streamlined and transparent.
