Early termination fees are “a bit like heroin for Adobe,” according to an Adobe executive quoted in the FTC’s newly unredacted complaint against the company for allegedly hiding fees and making it too hard to cancel Creative Cloud.
“There is absolutely no way to kill off ETF or talk about it more obviously” in the order flow without “taking a big business hit,” this executive said. That’s the big reveal in the unredacted complaint, which also contains previously unseen allegations that Adobe was internally aware of studies showing its order and cancellation flows were too complicated and customers were unhappy with surprise early termination fees.
It’s good for us to have employees raise comments and say, hey, Adobe, you should do better, we can do better. And then we look at it, we listen to it, and we take actions and we get better.” I asked Rao why the order screen doesn’t just clearly display the termination fee, which would solve a lot of the FTC’s problems, and his explanation was that calculating and displaying that price isn’t easy since the fee is 50 percent of a customer’s remaining term.
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