Damian Martone’s Post

Anyone who buys enterprise software and has tried to cancel a subscription understands the deliberate deceit and difficulty that companies install to make leaving difficult or impossible. The cancellation process makes the cable company look like a rank amateur. The software industry is addicted to the rental model because many investors value recurring revenue, continuously overvalue growth prospects, and generally ignore customer attrition. Intuit has done it with QuickBooks, cancelling the desktop version I bought, trying to force me into spending 300% more per year for cloud-based accounting software that I neither needed or wanted. Business accounting software is not rocket science and I have had no new capability of substance in QuickBooks that was helpful since the 2005 version. Lumivero has done it with my Monte Carlo simulation software. I paid them something like $1,500 per year to maintain my licenses and they decided to cancel that offering, offer to buy out my perpetual licenses at a "discount" by charging me 360% more annually for their software, again with marginal capability that had zero value to me. In a pigs-get-fat-hogs-get-slaughtered example, I ditched updating QuickBooks altogether, so now Intuit gets nothing from me. I ditched Lumivero as well and went with Crystal Ball from Oracle, which had licenses that were less expensive, were perpetual, provided more capable software in many respects for customizations, and did not involve a fragile licensing manager. I applaud the government for including the two executive officers that oversaw the program in the complaint as defendants. It will be interesting what personal financial liability they ultimately bear if they lose and whether that serves as a deterrent for others.

Trying to cancel your Adobe subscription is like trying to find a needle in a haystack, except the needle is also booby-trapped. The Justice Department is throwing shade at Adobe, accusing the software giant of trapping users in a maze of fine print and deceptive design. It's a classic case of "dark patterns," those sneaky user interfaces that trick you into doing things you didn't intend to, like subscribing to a year-long plan with hidden cancellation fees. This isn't just about Adobe, though. It's a spotlight on a growing trend in the digital world, where companies prioritize profit over transparency. From misleading ads to impossible-to-cancel subscriptions, dark patterns are everywhere, lurking in the shadows of our screens. So, the next time you're signing up for a service or clicking that enticing "free trial" button, be warned: you might be entering a digital labyrinth designed to keep you trapped. #DarkPatterns #Adobe #ConsumerProtection #DesignEthics

US Sues Adobe Over Subscription Plan Disclosures: The U.S. government on Monday sued Adobe, accusing the maker of Photoshop and Acrobat of harming consumers by enrolling them in its most lucrative subscription plans without clearly disclosing important terms. From a report: In a complaint filed in the San Jose, California, federal court, the government said Adobe failed to adequately disclose hefty early termination fees, sometimes reaching hundreds of dollars, when customers sign up for "annual, paid monthly" subscription plans. The government said Adobe hides important terms in fine print and behind textboxes and hyperlinks, clearly discloses the fees only when subscribers try to cancel, and makes canceling an onerous and complicated process. Read more of this story at Slashdot.

US Sues Adobe Over Subscription Plan Disclosures: The U.S. government on Monday sued Adobe, accusing the maker of Photoshop and Acrobat of harming consumers by enrolling them in its most lucrative subscription plans without clearly disclosing important terms. From a report: In a complaint filed in the San Jose, California, federal court, the government said Adobe failed to adequately disclose hefty early termination fees, sometimes reaching hundreds of dollars, when customers sign up for "annual, paid monthly" subscription plans. The government said Adobe hides important terms in fine print and behind textboxes and hyperlinks, clearly discloses the fees only when subscribers try to cancel, and makes canceling an onerous and complicated process. Read more of this story at Slashdot.

**US Regulators Sue Adobe Over Hard-to-Cancel Subscriptions** US regulators have filed a lawsuit against Adobe, accusing the company of making it difficult for customers to cancel subscriptions to Photoshop and other software. This lawsuit, filed on Monday (Tuesday NZT), is part of a broader regulatory crackdown on practices that hinder consumers from easily managing their subscriptions. The Adobe logo is displayed on screens in Athens, Greece, on May 22, 2024. Regulators claim that Adobe's subscription model traps users in a cycle that's hard to exit, often resulting in additional charges and frustration. These allegations focus on Adobe's subscription services, where users reportedly face numerous hurdles when attempting to cancel their plans. The lawsuit marks a significant move by US regulators aiming to protect consumers from so-called "subscription traps." These traps often involve convoluted cancellation processes, hidden fees, and automatic renewals that are difficult to opt out of. By targeting Adobe, a major player in the software industry, regulators hope to set a precedent that discourages such practices across the board. Adobe, known for its creative software like Photoshop, Illustrator, and Premiere Pro, has yet to comment on the lawsuit. The outcome of this case could have substantial implications for how software companies manage and structure their subscription services in the future. For more details and updates on this story, visit [www.techonwheels.co.nz](https://lnkd.in/dP6vPAj6). #Adobe #SubscriptionServices #ConsumerRights #RegulatoryAction #TechNews #TechOnWheelsNZ #Photoshop #SoftwareIndustry #USRegulators #SubscriptionTraps

Dominating a market is no good: This time, Adobe is accused of luring (Creative Cloud) users into long-term contracts while hiding #termination conditions in contracts and presenting 'surprises' in cancellation process. Adobe is undisputedly the darling of designers. The U.S Department of Justice and the Federal Trade Commission FTC yesterday filed a lawsuit against Adobe for imposing a hidden termination fee on subscribers who want to cancel their #Adobe (#creativcloud) plans. Adobe is allegedly forcing subscribers to "navigate a complex and challenging cancellation process designed to deter them from cancelling subscriptions they no longer wanted." Adobe offers its Creative Cloud products on a subscription basis, with fees that are paid monthly, so that they seem less expensive. A monthly payment suggests that it's possible to cancel anytime, but that's not how Adobe works because most customers are actually locked into a hidden annual agreement, and Adobe is accused of hiding some of the key terms. Over and above that, customers who sign up for a free trial and are then charged and signed up to the default Creative Cloud plan, which is actually an annual contract. Canceling the annual contract requires customers to pay a substantial sum of 50%! of the "remaining contractual obligation" to cancel, despite the fact that service ends that very month!. https://lnkd.in/eMpD_tHC

Recently, I tried canceling my Adobe subscription—a process that should be straightforward, right? Instead, I was met with hurdles at every turn. Adobe wouldn’t let me cancel without paying the remainder of the subscription fee, but it offered plenty of options to switch to a different plan. The result? Confusing choices that made cancellation feel unnecessarily expensive, leaving me frustrated and questioning my decision to subscribe in the first place. 😤 This is a classic example of a dark pattern in experience design—a tactic that uses confusion, lack of transparency, or frustration to push users into decisions that primarily benefit the company rather than the customer. While this might seem effective in the short term, it creates a deep sense of frustration and erodes trust over time. 👎 In the world of experience design, nudging can be a powerful tool. It involves subtly guiding customers toward beneficial actions, like completing a profile or opting for eco-friendly shipping, by making those actions easier or more appealing. But there’s a fine line between ethical nudging and using dark patterns to manipulate. Dark patterns might achieve short-term goals, but they ultimately damage trust, degrade the customer experience, and risk long-term relationships and brand reputation. 🤝 As Experience Designers, we are responsible for creating transparent, honest, and user-friendly experiences that empower customers rather than trick them. Let’s choose to build trust over time and prioritize ethical design in everything we do. 🚀 #CustomerExperience #ExperienceDesign #EthicsInDesign #DarkPatterns #Nudging

Adobe's subscription business has been "killing" it! Over the past decade, the design software leader has seen its subscription revenue jump by 16x, lifting its valuation to over $200 billion. Also, the same subscription business has caused negative PR for Adobe. The US Federal Trade Commission sued Adobe for: • Hid cancellation fees in fine print • Created a complicated cancellation process • Failed to help customers who wanted to cancel It would be interesting to see how that story will play out. #Adobe #Markets #Finance #Investing

Who will win: Adobe or the US government??? Honesty is everything. In personal AND professional life. And the US government is suing Adobe for being dishonest. Here's what happened: 👉 They tried to cancel their subscription and were hit with millions of dollars in 'cancellation fees' 👉 The FTC claims that Adobe failed to clearly disclose its cancellation terms 👉 A 'convoluted cancellation process' is under discussion The FTC is backing the government here, claiming that Adobe failed to hold up its end of the bargain. That's REALLY bad news for Adobe. But they could've avoided this. Sure, it's in the company's best interest to protect themselves from the loss of major clients. And there are few clients bigger than the US government. The loss of that account could result in job losses for Adobe. It would also deal a MAJOR blow to shareholders. This is why I'm VERY upfront with my clients about cancellation terms. But this extends to my personal life. I've found that honesty is key. Being upfront with people is the foundation of a successful life. You earn the respect of others this way. You also avoid conflict because expectations were already set forth. Do you think the US government or Adobe will win this lawsuit?

Photoshop this: Adobe is hiding something, at least that’s what the FTC is alleging by taking action against the company. The US Justice Department filed a complaint that charges Adobe with pushing customers toward a “monthly” plan that’s really an annual commitment. When customers try to cancel before the annual commitment is up, they’re hit with a hidden cancellation fee that can be hundreds of dollars. The complaint says this violates the Restore Online Shoppers’ Confidence act. When your customers are trying to cancel your product, you’ve got to let them follow through without too much friction. It’s not a matter of letting them cancel right away, but gathering a bit of data on why they are cancelling will help inform how to prevent future cancellations. And if you provide a proper salvage offer to keep them around, this can improve retention by up to 30%... plus you avoid getting in trouble with the feds.