Software company Adobe disclosed it could face “significant monetary costs or penalties” resulting from an ongoing Federal Trade Commission (FTC) investigation into its disclosure and subscription cancellation practices.
In a regulatory filing Wednesday, Adobe said it was notified by the FTC in November that it could face consent negotiations to determine a settlement regarding potential violations of the Restore Online Shoppers’ Confidence Act. The act “prohibits any post-transaction third-party seller … from charging any financial account in an internet transaction unless it has disclosed clearly all material terms of the transaction and obtained the consumer’s express informed consent to the charge.”
Adobe said it is cooperating with the FTC’s investigation, which began in June 2022.
“We believe our practices comply with the law and are currently engaging in discussion with FTC staff,” the company said.
The FTC enforced the Restore Online Shoppers’ Confidence Act in 2020 against online children’s education company Age of Learning, which agreed to pay $10 million to resolve charges it billed tens of thousands of consumers for renewed memberships without their consent.
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