The US Justice Department, together with the Federal Trade Commission (FTC), are suing Adobe Inc. (and two Adobe executives) over an alleged hidden “Early Termination Fee” and an alleged overly complex subscription-cancellation process.

Hiding Important Information 

In the complaint, filed in the U.S. District Court for the Northern District of California, it’s alleged that Adobe Inc systematically violated the Restore Online Shoppers’ Confidence Act (ROSCA) using fine print and inconspicuous hyperlinks to hide important information about Adobe’s subscription plans.

Using An Early Termination Fee As A Retention Tool? 

Allegedly, these violations include a significant “Early Termination Fee” that customers may be charged when they cancel their subscriptions, which Adobe may have profited from. The complainant says that this may amount to misleading Adobe’s consumers about the true costs of a subscription and “ambushing” them with the fee when they try to cancel, i.e. using the fee as a powerful retention tool.

Deterred From Cancellation By The Complexity Of The Process? 

The Justice Department / FTC complaint alleges that Adobe has also been violating ROSCA by not providing consumers with a simple mechanism to cancel their recurring, online subscriptions. Instead, it’s alleged, Adobe protects its subscription revenues by “thwarting subscribers’ attempts to cancel” and by “subjecting them to a convoluted and inefficient cancellation process filled with unnecessary steps, delays, unsolicited offers, and warnings”. It’s alleged, therefore, that the complexity of the cancellation process appears to be used to deter customers from cancelling (another retention tool).

Trapping Customers 

The Director of the FTC’s Bureau of Consumer Protection, Samuel Levine, summed up the complaint against Adobe, saying “Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles,” and that “Americans are tired of companies hiding the ball during subscription signup and then putting up roadblocks when they try to cancel”. 

Responsibility 

U.S. Attorney Ismail J. Ramsey for the Northern District of California highlighted how “Companies that sell goods and services on the internet have a responsibility to clearly and prominently disclose material information to consumers”.  He added that “It is essential that companies meet that responsibility to ensure a healthy and fair marketplace for all participants.  Those that fail to do so, and instead take advantage of consumers’ confusion and vulnerability for their own profit, will be held accountable.” 

Principal Deputy Assistant Attorney General Brian M. Boynton (head of the Justice Department’s Civil Division) also highlighted the importance of stopping “companies and their executives from preying on consumers who sign up for online subscriptions by hiding key terms and making cancellation an obstacle course”. 

What Does Adobe Say? 

In a statement on Adobe’s website, in answer to the allegations in the lawsuit, Adobe’s general counsel and chief trust officer Dana Rao denies the FTC’s claims and says Adobe will contest the charges in court.

Mr Rao says: “Subscription services are convenient, flexible and cost effective to allow users to choose the plan that best fits their needs, timeline and budget. Our priority is to always ensure our customers have a positive experience. We are transparent with the terms and conditions of our subscription agreements and have a simple cancellation process. We will refute the FTC’s claims in court.” 

Penalties 

The lawsuit seeks unspecified amounts of consumer redress and monetary civil penalties from the defendants, as well as a permanent injunction to prohibit them from engaging in future violations.

Not The Only Ones 

Adobe is, of course, not the only big tech company to have attracted the attention of the US Federal Trade Commission (FTC) in recent times. For example, earlier this month, the FTC filed a lawsuit against Amazon for allegedly enrolling customers in its Prime subscription service without their consent and making it difficult to cancel the subscription. The FTC accused Amazon of using “dark patterns” to mislead customers and hinder their attempts to unsubscribe easily

What Does This Mean For Your Business? 

The lawsuit against Adobe should be an important reminder for businesses about the importance of transparency and simplicity in subscription services. The allegations against Adobe highlight the potential risks and legal repercussions of not clearly disclosing all terms and conditions associated with subscription plans. UK businesses offering similar services must ensure that all subscription-related fees, particularly early termination fees, are clearly communicated to customers upfront to avoid misleading them.

The complexity of the cancellation process is another significant issue raised in the Adobe case. Businesses must create a straightforward and user-friendly cancellation process. Any attempt to complicate this process could be viewed as a strategy to retain customers unfairly, which could lead to legal challenges. Also, ensuring that customers can easily unsubscribe from services not only builds trust but also complies with consumer protection laws.

The involvement of two high-level executives in the Adobe lawsuit (David Wadhwani and Maninder Sawhney) highlights the accountability at all levels of an organisation. Business leaders should, therefore, be vigilant and ensure their company’s practices are transparent and compliant with regulations. This includes regularly reviewing and updating terms of service and cancellation policies to meet legal standards and customer expectations.

For UK businesses, this case also signals the increasing scrutiny from regulatory bodies worldwide, including the UK’s Competition and Markets Authority (CMA), which has similar oversight on consumer rights and business practices. Staying informed about both local and international regulations and aligning business practices accordingly can prevent potential legal issues.

The Adobe lawsuit, therefore, illustrates the crucial need for businesses to be transparent, honest, and straightforward in their dealings with customers. By adopting clear communication, simplifying processes, and ensuring compliance, UK businesses can foster better customer relationships and avoid costly legal disputes.

Apple has announced that because of regulatory uncertainties due to the EU’s Digital Markets Act (DMA), it will be delaying the EU region rollout of three new AI features – Phone Mirroring, SharePlay Screen Sharing enhancements, and Apple Intelligence – until later this year.

Phone Mirroring allows users to display their iPhone screen on other Apple devices seamlessly, and the SharePlay Screen Sharing enhancements are designed to improve collaborative experiences by enabling simultaneous app usage and interactions during screen-sharing sessions. The Apple Intelligence feature uses AI to produce text, images, and other content on command.

Apple said (in an email) that its main concern is that “the interoperability requirements of the DMA” would force it to compromise the integrity of its products in ways that “risk user privacy and data security”.

Apple has also said, however, that it will be working with the European Commission to find a solution that would enable it to deliver the three new AI features to EU customers without compromising their safety.

Marnie Wilking, chief information security officer at Booking.com, has warned that the arrival of generative AI and its use by scammers to create more sophisticated phishing emails is behind an increase in travel scams of up to 900 per cent in the last 18 months.

Speaking at the Collision technology conference in Toronto, Ms Wilking said that the increase in travel scams, using phishing emails containing fake booking links and made to look like they’re from Booking.com and Airbnb, started shortly after ChatGPT was launched.

Ms Wilking called for the industry and customers/travellers and hotels to use two-factor authentication, and an additional check, such as inputting a security code, to combat phishing and credential stealing.

Massachusetts-based Woods Hole Oceanographic Institute (WHOI) research scientists, in partnership with bioplastic manufacturing company Eastman, have reported developing a new a prototype bioplastic straw that degrades even faster than paper.

The Problem With Drinking Straws 

The problem with plastic drinking straws is that they are now one of the most commonly found sources of marine litter. Their single-use nature contributes to global plastic pollution. These straws are not biodegradable, perhaps taking hundreds of years to break down. In oceans, for example, they can harm marine life both physically and through ingestion.

Lack of Understanding 

Although the research looked at this issue, the study was carried out with a bioplastic company as a partner. Therefore, the researchers made the point that there is a lack of understanding of how long plastics (such as drinking straw plastics) last in the ocean and that, although science supports moving away from using the material, plastics are here to stay. The researchers therefore carried out the research with the overarching idea that it’s important to try and find a next-generation type of plastic that works equally as well, yet which degrades much more quickly, and doesn’t contribute to persistent plastic pollution in the environment.

Study  

As acknowledged by the researchers, not all plastics are created the same and different manufacturers have different formulations of base polymers, e.g. polylactic acid (PLA) and polypropylene (PP) and chemical additives, meaning that different plastic formulations behave differently in the environment and break down in the ocean at different rates.

As part of the research, therefore, WHOI scientists Collin Ward, Bryan James, Chris Reddy, and Yanchen Sun put different types of plastics and paper drinking straws head-to-head to see which degrade the fastest in the coastal ocean.

This involved suspending eight different types of straws in a tank of continuously flowing seawater from Martha’s Vineyard Sound, Massachusetts. The tank’s temperature was controlled while light exposure plus other environmental variables were made to mimic the natural marine environment. The eight straws were monitored for signs of degradation over 16 weeks, and the microbial communities growing on the straws were characterised.

The Findings 

The researchers (who published their paper in ACS Sustainable Chemistry & Engineering) found that some biodegradable straws degrade up to 50 per cent in just 16 weeks in marine environments, thereby offering a potential sustainable alternative to traditional plastics and potentially contributing to reduced ocean pollution. Specifically, the researchers found that a prototype straw made from a material called cellulose diacetate (CDA) – a polymer derived from wood pulp – breaks down even faster than paper in the environment when foamed (foamed CDA).

WHOI scientist, Brian James, said: “The unique aspects of this foam straw are that it’s able to have a shorter expected lifetime than the paper straws but retain the properties that you enjoy of a plastic or a bioplastic straw”.  This could indicate that the foamed prototype straw could become a promising alternative to conventional plastic straws compared to paper straws, which degrade quickly in the ocean but sour user-experience by getting soggy.

The Value Of The Study 

Jeff Carbeck, Eastman’s Vice President of Corporate Innovation, highlighted the value of the study, saying: “This study can be immensely valuable for straw manufacturers by providing informed and transparent data when selecting a material for straws. Even more, it provides reassurance that CDA-based straws won’t add to the persistent plastic pollution, while also demonstrating straw manufacturers’ commitment to offering a sustainable product that reduces risk to marine life”. 

Going Forward 

WHOI scientist Collin Ward said that he and the rest of the research team plan to continue measuring the degradability of plastic materials, with the hope of guiding where the industry goes next and that the object is to “optimise their products for degradation in the environment and ultimately the good of the planet.” 

What Does This Mean For Your Organisation? 

The development of a new bioplastic straw that degrades faster than paper by WHOI researchers (and Eastman) could present a significant opportunity for UK businesses and organisations committed to sustainability. This innovation not only addresses the persistent issue of plastic pollution in marine environments but also aligns with the increasing consumer demand for environmentally responsible products.

For businesses in the hospitality and food service industries, integrating biodegradable straws could enhance their sustainability credentials and appeal to a more eco-conscious clientele. It offers a practical solution that does not compromise on user-experience, overcoming the common drawback of paper straws that tend to become soggy. This shift could serve as a substantial point of differentiation in competitive markets, potentially attracting new customers and improving customer satisfaction among those who take a real interest in the environmental impact of their purchasing decisions.

Also, the introduction of these bioplastic straws could influence supply chains. For example, companies might consider transitioning to these more sustainable materials as part of their procurement processes, which could help in setting new standards within the industry. This move could also pre-empt future regulatory changes as government policies increasingly favour environmental sustainability in business practices.

This development could also inspire more innovation within the UK’s manufacturing sector. Companies involved in the production of single-use items, for example, may be inspired to explore and invest in similar biodegradable technologies. Such innovation not only aids in compliance with environmental regulations but also opens up avenues for new products and market expansion.

Overall, the research from WHOI and Eastman could be a catalyst for UK businesses to re-evaluate and potentially change their environmental strategies. By adopting these faster-degrading bioplastic straws, businesses could significantly reduce their ecological footprint, align with global sustainability trends, and position themselves as leaders in the movement towards a more sustainable future.

This video-update outlines when a chatbot gives you more relevant help than just a Google Search.

Snapping windows allows you to quickly arrange open windows on your screen, making multitasking more efficient by giving you a better overview of multiple applications simultaneously. Here’s how to do it:

To snap a Window to the Side

– Click on the window you want to snap.

– Press Win + Left Arrow or Win + Right Arrow to snap the window to the left or right half of the screen.

To snap a window to a Corner

– After snapping to the side, press Win + Up Arrow or Win + Down Arrow to move the window to a corner.

To snap to quadrants

– You can also directly snap a window to a corner by dragging it to a corner or using the Win + Arrow keys combination.