SAN JOSE (dpa-AFX) - The U.K.'s Competition and Markets Authority said it has launched an investigation into software giant Adobe Inc. (ADBE) over concerns that its early cancellation fees may breach consumer protection law.
The regulator is examining Adobe's 'annual billed monthly' subscription plan, under which customers who cancel after 14 days must pay 50% of the remaining yearly cost.
The CMA said the probe will assess whether these terms are unfair or misleading, and whether customers are given clear and timely information upfront about potential cancellation charges before signing up.
Adobe's products, including Adobe Photoshop, Adobe Illustrator and Adobe Premiere Pro, are widely used by consumers and professionals for creative work.
The CMA noted it has not yet reached any conclusions on whether Adobe has violated the law.
Emma Cochrane, Executive Director for Consumer Protection at the CMA, said: 'From students to content creators, millions of people rely on digital design tools - and they should feel confident that businesses selling these services play by the rules.'
'Our investigation will consider whether Adobe customers are getting a fair deal and if they have enough information upfront about the cancellation fee,' she added.
The CMA said the outcome could include enforcement action, remedies, or closure of the case, depending on the evidence gathered.
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