4 ms·

Exactly. It’s a contract. If you cancel it early, the other contract partner has the right to get a compensation fee. That’s perfectly normal and also practise

Exactly. It’s a contract. If you cancel it early, the other contract partner has the right to get a compensation fee. That’s perfectly normal and also practised by other companies.

piva00 6y ago
It's unusual for B2C subscription services to charge a cancelation fee and withhold access for the remainder of the period. It's another mental obstacle for the customer to overcome on the sunken cost fallacy, it's slimey at best.
- nicbou 6y ago
  If you pay the fee and keep using the service, it's not a fee, it's a cancellation period.
tylerhou 6y ago
The issue is that it's not clear to consumers that the contract has a cancellation fee. See this screenshot, which alludes to a cancellation fee but doesn't explicitly say how large it is until you click into the fine print: https://i.imgur.com/5xTA7eC.png https://i.imgur.com/5xTA7eC.png Maybe businesses are savvy enough to read the fine print, but I think many normal consumers don't understand that there is a fee to cancel, given that it is not prominently shown. You can't just bury meaningful parts of a contract into terms and conditions.
deleted 6y ago
[deleted]
anigbrowl 6y ago
You're equating contract terms with general reciprocity. Many, perhaps most other businesses pro-rate subscription services and understand that customers may need to cancel, if only because they don't want the sort of bad publicity Adobe is receiving right now. Tough contracts with significant breaching penalties are generally made between peers (two individuals or two businesses) rather than producers and consumers. There is a doctrine of unconscionability in contract law that says just because you secure agreement to highly unfavorable terms doesn't mean the contract is beyond review of a court, if there is a significant asymmetry between the contract parties.

4 ms·

Exactly. It’s a contract. If you cancel it early, the other contract partner has the right to get a compensation fee. That’s perfectly normal and also practise

by cbmuser 6y ago

Exactly. It’s a contract. If you cancel it early, the other contract partner has the right to get a compensation fee. That’s perfectly normal and also practised by other companies.

piva00 6y ago
It's unusual for B2C subscription services to charge a cancelation fee and withhold access for the remainder of the period. It's another mental obstacle for the customer to overcome on the sunken cost fallacy, it's slimey at best.
- nicbou 6y ago
  If you pay the fee and keep using the service, it's not a fee, it's a cancellation period.
tylerhou 6y ago
The issue is that it's not clear to consumers that the contract has a cancellation fee. See this screenshot, which alludes to a cancellation fee but doesn't explicitly say how large it is until you click into the fine print: https://i.imgur.com/5xTA7eC.png https://i.imgur.com/5xTA7eC.png Maybe businesses are savvy enough to read the fine print, but I think many normal consumers don't understand that there is a fee to cancel, given that it is not prominently shown. You can't just bury meaningful parts of a contract into terms and conditions.
deleted 6y ago
[deleted]
anigbrowl 6y ago
You're equating contract terms with general reciprocity. Many, perhaps most other businesses pro-rate subscription services and understand that customers may need to cancel, if only because they don't want the sort of bad publicity Adobe is receiving right now. Tough contracts with significant breaching penalties are generally made between peers (two individuals or two businesses) rather than producers and consumers. There is a doctrine of unconscionability in contract law that says just because you secure agreement to highly unfavorable terms doesn't mean the contract is beyond review of a court, if there is a significant asymmetry between the contract parties.