US FTC looking into our subscription cancellation practices: Adobe
Adobe said that “we believe our practices comply with the law and are currently engaging in discussion with FTC staff”
Representative Image (Reuters)
SAN FRANCISCO: The US Federal Trade Commission (FTC) is looking into Adobe’s subscription cancellation practices, the software giant has revealed.
Since June 2022, Adobe has been cooperating with the FTC staff in response to a "Civil Investigative Demand seeking information regarding our disclosure and subscription cancellation practices relative to the Restore Online Shoppers’ Confidence Act".
“In November 2023, the FTC staff asserted that they had the authority to enter into consent negotiations to determine if a settlement regarding their investigation of these issues could be reached,” Adobe said in a filing with the US Securities and Exchange Commission (SEC).
Adobe said that “we believe our practices comply with the law and are currently engaging in discussion with FTC staff”.
“The defense or resolution of this matter could involve significant monetary costs or penalties and could have a material impact on our financial results and operations,” the company admitted.
Adobe reported revenue of $4.89 billion in its third quarter of fiscal year 2023, which represents 10 per cent year-over-year growth.
“We are unleashing a new era of AI-enhanced creativity around the world with innovations across our product portfolio,” said Shantanu Narayen, chair and CEO, Adobe.
“The recent launches of Firefly, Express, Creative Cloud and GenStudio make Adobe magic available to millions of users,” he had said in September.
Digital Media segment revenue was $3.59 billion, which represents 11 per cent year-over-year growth or 14 per cent in constant currency.