Paddle’s Post

Churn is the nemisis of SaaS success, but you can't combat it by locking customers in. You combat churn by delivering a compelling product offering at the right price. Ben Hillman has essential advice here on how to be on the right side of this line.

🚨DOJ Lawsuit: Adobe "Trapped Customers" into Subscription Scheme 🚨 “Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles. Americans are tired of companies hiding the ball during subscription signup and making roadblocks when they try to cancel.” Key Points 💡 ◾After shifting to its new subscription model, Adobe's subscription revenue rose to $14.22 billion in 2023 from $7.71 billion in 2019. ◾Adobe, Wadhwani, President of the company’s digital media business, and Sawhney, Vice President, are alleged to have violated the Restore Online Shoppers’ Confidence Act (ROSCA) and the FTC Act by failing to disclose material terms of the transaction before obtaining consumers’ billing information. ◾They are also accused of violating ROSCA and the FTC Act by failing to get consumers’ express informed consent before charging their accounts. ◾Adobe allegedly violated ROSCA and the FTC Act by failing to provide “simple mechanisms” for consumers to stop recurring charges. Cancellation Process 📝 The lawsuit alleges Adobe designed its procedures to make it difficult for consumers to cancel: ◾Consumers trying to cancel on Adobe’s website are taken through multiple screens and clicks, each designed to discourage cancellation. ◾When contacting Adobe’s customer service, consumers encounter dropped calls, interrupted chats, and multiple transfers. ◾Some consumers who thought they had successfully canceled only realized Adobe was still charging them when they checked their credit card statements. Overall, federal regulators are increasingly penalizing companies with hard-to-cancel subscriptions as part of a broader effort to curb Big Tech's power. The Justice Department and the FTC have filed antitrust lawsuits against Google, Amazon, Apple, Microsoft, and Meta, accusing them of stifling competition. 💡Learn More💡 ➡ https://lnkd.in/gPBtT3q4 ➡ https://lnkd.in/gb-dXa8N #fraud #financialcrime #money

If GAI isn’t the Adobe pebble stuck in your shoe, it might be by a change in the Terms of Use and possible legal ramifications. Or you may be sick of paying Adobe regularly for many features you don’t like or need. Whatever your reasons, we’ve rounded up some alternatives to Adobe’s #software suite. We’ve organized the apps based on their closest Adobe alternatives. We’ve included key information to know, such as licensing and pricing, which operating systems are supported, and standout features. Read and see more on The Dieline! https://lnkd.in/e9tSgFD9

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?

Adobe warns it may face massive fines for subscription cancellation practices Adobe has revealed it may have to fork out "significant monetary costs or penalties" as a result of a US Federal Trade Commission (FTC) investigation of its subscription cancellation practices. The graphics giant slipped the news into a filing that details its Q4 and FY 2023 results and other corporate events #FTC #Adobe #CreativeCloud #subscription #technology #tech #business

Adobe needs no introduction. Neither does the Federal Trade Commission, which alleges Adobe used trickery to make their “annual paid monthly” plan look more attractive by hiding cancellation fees in fine print. The FTC claims Adobe made it hard to cancel, with dropped calls and uncooperative reps, leading to ongoing charges. It’s too early to predict how this case will turn out, but Gonzalo Mon points out some of the important lessons we can learn at this stage. https://lnkd.in/gEPP_c7x #AdLaw #FTC #Adobe #Disclosures #KelleyDrye

My Key Takeaways from the FTC’s Complaint Against Adobe Regarding Their Subscription Offerings The FTC's recent complaint against Adobe raises several critical points, despite being heavily redacted. In light of this, I've filed a FOIA request for additional information. Here are my key takeaways: 1. Personal Liability for Executives: Executives can be held personally liable for FTC violations, independent of the company. ⚖️ 2. Customer Complaints: Companies should proactively monitor and address customer complaints about their cancellation processes, including those received through customer service and organizations like the Better Business Bureau (BBB). 🛠️ 3.  Clear Disclosure: Avoid using "ⓘ" icons to disclose material information about subscription services. Important details should be straightforward and easily accessible. 🔍 4. Simplify Cancellations: Make the cancellation process as easy as possible. Stop requiring customers to confirm their decision multiple times! ❌🔄 5. Transparent Terms: Ensure both the length of the subscription term and the consequences of early cancellation (including fees) are openly disclosed to the customer. 📜 #FTC #PrivacyEnforcement #PrivacyBOLO https://lnkd.in/ejsuKMJg

In recent news of businesstoday, a concerning matter arose for Adobe users. The Federal Trade Commission (FTC) has filed a lawsuit against Adobe accusing the software giant of deceptive practices related to its subscription plans. This lawsuit could have significant implications for Adobe, which generates a substantial portion of its revenue from subscriptions. #BusinessNews #businesstoday #technews #legalupdate #adobe #adobenews #FTC #consumerrights #SubscriptionServices #softwareindustry #NewsBulletin #newsbulletintoday #MarketWatch #industrynews #federaltradecommission  

The FTC action against Adobe is interesting for a few reasons, but most prominent to me--and most opaque because it's all blacked out--are the charges against two senior personnel at Adobe. What did the individual defendants do? Unclear! (See attached screenshot) But the allegations against the company regarding the onboarding flow are important and applicable to most industries, not just subscription models. Here are three key takeaways (with the latter particular to subscription models): 1️⃣ 𝐂𝐥𝐞𝐚𝐫 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞 𝐨𝐟 𝐓𝐞𝐫𝐦𝐬: Entities must ensure that all material terms, especially those concerning financial commitments and penalties (like early termination fees), are clearly and conspicuously disclosed during the customer onboarding process. Hidden terms in fine print or behind hyperlinks (e.g., tool tips) can lead to legal challenges and consumer dissatisfaction. 2️⃣ 𝐓𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐭 𝐂𝐚𝐧𝐜𝐞𝐥𝐥𝐚𝐭𝐢𝐨𝐧 𝐏𝐫𝐨𝐜𝐞𝐬𝐬: The cancellation process should be straightforward and easy to navigate. Entities should avoid complex cancellation procedures that can frustrate customers and potentially violate consumer protection laws. 3️⃣ 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐰𝐢𝐭𝐡 𝐍𝐞𝐠𝐚𝐭𝐢𝐯𝐞 𝐎𝐩𝐭𝐢𝐨𝐧 𝐁𝐢𝐥𝐥𝐢𝐧𝐠 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬: If employing a subscription model with automatic renewals or negative option features, entities must comply with relevant regulations like ROSCA. This includes obtaining express informed consent before billing and providing an easy mechanism for stopping recurring charges. (Link in comments)

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