CMA cracks knuckles, eyes Adobe's cancellation fees

"Under its terms, Adobe says customers that cancelled its 'annual billed monthly' subscription after more than two weeks are subject to a cancellation fee equating to 50 percent of the yearly cost. After they end the plan, the user only has access to the software until the close of that month's billing period."

"The Competition and Markets Authority says it will examine if these terms are unfair and whether customers get 'clear and timely information upfront' about these fees that could influence their buying behavior."

"Adobe is the ninth business to be probed under the direct consumer enforcement powers, allowing the CMA to rule on breaches of the law rather than going to court. The watchdog can impose fine on corporations of up to ten percent of global turnover, and it can also penalize businesses for concealing evidence or providing false information."

The Competition and Markets Authority (CMA) has launched an investigation into Adobe's subscription cancellation practices. Adobe charges customers who cancel their 'annual billed monthly' plans after two weeks a fee equivalent to 50 percent of the yearly cost, with access ending at the month's billing period. The CMA will examine whether these terms are unfair and if customers receive clear, timely information about fees that could affect purchasing decisions. This is the ninth business investigated under the CMA's direct consumer enforcement powers, which allow the watchdog to rule on law breaches and impose fines up to ten percent of global turnover. The digital design sector, worth approximately £60 billion, has expanded significantly, with Adobe commanding substantial market dominance through products like Photoshop and Illustrator.

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