TECH - Adobe Faces Potential Penalties Amid FTC Scrutiny Into Subscription Cancellation Practices | Benzinga
Adobe Inc. (NASDAQ:ADBE) may face substantial fines or penalties due to an ongoing Federal Trade Commission (FTC) inquiry into its disclosure and subscription cancellation policies.
What Happened: A Wall Street Journal report on Wednesday states that Adobe has been collaborating with FTC staff since June 2022. The investigation focuses on the company’s adherence to the Restore Online Shoppers' Confidence Act, as revealed in a regulatory filing on Wednesday.
In November, FTC staff implied having the power to commence consent negotiations to determine a possible settlement over the investigated issues. Adobe, headquartered in San Jose, California, maintains that its practices are within the boundaries of the law and is currently engaged in discussions with FTC staff.
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"We have been cooperating with and engaging in discussion with the FTC ...