←back to thread

553 points bookofjoe | 1 comments | | HN request time: 0s | source
Show context
55555 ◴[] No.43661106[source]
Adobe runs what must be one of the largest deceptive rebills. The vast majority of users signing up for a monthly plan do not realize that it is actually an "annual plan, billed monthly" and thus that if they cancel after one month (for example) they'll be billed for the remaining 11 immediately. I honestly don't know how they haven't faced FTC action for this, as it's been their primary model for 5-10 years now.
replies(18): >>43661156 #>>43661248 #>>43661256 #>>43661324 #>>43662187 #>>43662338 #>>43662375 #>>43662399 #>>43663387 #>>43664265 #>>43664914 #>>43666795 #>>43667004 #>>43667057 #>>43667496 #>>43667852 #>>43667988 #>>43668119 #
devsda ◴[] No.43662187[source]
> actually an "annual plan, billed monthly" and thus that if they cancel after one month (for example) they'll be billed for the remaining 11 immediately

I don't know if this is a recent policy change, but it is not the complete amount but only 50% of the remaining annual amount as per their website[1].

If it were something involving physical goods or services I can understand, but 50% penalty is still a crazy amount for a hosted software service.

1. https://www.adobe.com/legal/subscription-terms.html

replies(1): >>43662620 #
r33b33 ◴[] No.43662620[source]
That's why you always use throwaway cards for this.
replies(3): >>43662646 #>>43663301 #>>43664741 #
reisse ◴[] No.43663301[source]
Of course it's highly unlikely they'll go in court for a single user, but if everyone starts doing this, they'll sue. It doesn't matter the payment failed, you still legally owe Adobe (or any other service) money.
replies(6): >>43663314 #>>43663619 #>>43664105 #>>43668372 #>>43670485 #>>43672573 #
croes ◴[] No.43663314[source]
They could lose because of unfair business practices.
replies(2): >>43663489 #>>43664257 #
Taek ◴[] No.43663489[source]
Elaborating on this, it's almost certainly a civil case that goes to arbitration, which really means that the arbitrator has to feel like Adobe is in the right. It's quite informal relative to typical legal settings, and if the arbitrator doesn't feel like siding with Adobe... they won't.

Furthermore, it's going to cost Adobe a minimum of $1500 to even bring the case to arbitration, and probably $15k more in legal fees to actually win.

So yes, it's actually a difficult battle for Adobe to win and the costs will be much higher than the payout.

replies(1): >>43664162 #
1. brookst ◴[] No.43664162{3}[source]
This.

Adobe knows this. It’s a numbers game; if they have an honest monthly subscription and someone cancels, they get nothing.

If they have this scammy subscription and they collect 50% of the remainder for 50% of people, it’s like a free 25% (of the remaining “annual” term).