Lessons From Adobe’s Updated Terms of Use Controversy

When Adobe updated its Terms of Use in June 2024, few anticipated the wave of criticism that would follow.

The controversy began when users were prompted to accept new terms for their Creative Suite applications, sparking widespread concern among creators who feared their work might be used to train AI models.

The backlash quickly spread across social media, and despite Adobe’s response, which led to further updates to the Terms of Use, the trust between Adobe and its users was damaged.

This incident underscores the growing tension between tech companies and content creators, and highlights the challenge of crafting clear, user-friendly ToS in an era dominated by generative AI.

Which is why we’re looking back at it today. 

In the following sections, we'll break down the key elements of the controversy—from its eruption to Adobe's response and the broader implications for Terms of Service in the AI age.

How can companies innovate while maintaining user trust? What role does clear communication play in preventing misunderstandings? And how might the rise of generative AI transform our views on content ownership and privacy? 

Join us as we delve into these issues and learn from the challenges brought to light by this story.

The Terms of Use update that started it all 

It began innocuously enough: In early June, users were caught off guard when prompted to accept revised terms upon opening their Creative Suite applications. 

One particular clause caught the attention of the creative community:

"We may access your content through both automated and manual methods, such as for content review."

The statement sparked widespread concern. 

Creators feared that Adobe might use their work to train AI models without compensation or consent. A single tweet highlighting this clause garnered over 5 million views and 50,000 likes, igniting a viral backlash.

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Adobe’s Subscription Model: The Root of User Concerns?

Mike Castner, from TrustLab's policy and operations team, provides valuable insight into what could be the root of user concerns: 

"Adobe has leaned heavily into the subscription model, with Photoshop and other core products no longer being sold by major version, but on an ongoing basis. If you want the latest tools, you have to keep paying to maintain access."

This shift in Adobe's business model had already created tension with users.

When the ToS update appeared to grant Adobe broad rights over user content, it struck a particularly sensitive nerve among content creators who rely on Adobe tools for their livelihoods.

Adobe’s Response & Changes to Terms of Use

With the Internet in a blaze, Adobe issued a statement.

In a blog post, the company clarified that they have never trained generative AI on customer content, taken ownership of users' work, or allowed access to customer content beyond legal requirements. 

Adobe promised to update their ToS, to explicitly state that users own their content and that it will never be used to train any generative AI tool.

On June 24, 2024, Adobe released updated Terms of Service that explicitly addressed the concerns:

1. User ownership: The new terms clearly state that users own their content.
2. AI training: Adobe explicitly promised not to use user content to train generative AI, except for content submitted to the Adobe Stock marketplace.
3. Content review: The terms now distinguish between locally stored content (which is not reviewed) and cloud-stored content, which may be automatically scanned for illegal material.
4. Opt-out options: Users can now opt out of Adobe's product improvement program, which uses anonymized data to enhance features.

Adobe’s Terms of Use: Before and After

Comparing the June 6 and June 24 versions of Adobe's ToS reveals significant changes, particularly to the language and presentation of their ToS.

Adobe not only added summaries to each ToS section to clarify their position, they generated an FAQ spelling out when and how data is accessed and used to train GenAI.

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Before:

• Vague language about content access and review
• No explicit mention of AI training practices
• Limited explanation of user rights and opt-out options

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After:

• Clear statements on content ownership
• Explicit prohibition on using user content for AI training (with Adobe Stock exception)
• Detailed explanation of content review processes
• Enhanced user rights and opt-out options
• Addition of summary sections for easier understanding

Transparency in the Age of AI 

The Adobe controversy serves as a wake-up call for tech companies in the AI era. It highlights several key issues:

1. Transparency is crucial: Companies must be clear about how they use user data, especially concerning AI training.
2. User-friendly language matters: Complex legal jargon can lead to misunderstandings and erode trust. Adobe's addition of summary sections is a step in the right direction.
3. AI concerns are top-of-mind: As generative AI becomes more prevalent, users are increasingly concerned about how their content might be used to train these systems.
4. Rapid response is essential: Adobe's quick clarification and subsequent ToS update helped mitigate some of the damage, though trust issues persist.
5. Content moderation challenges: The incident highlights the delicate balance companies must strike between protecting users from harmful content and respecting privacy.

As we move deeper into the AI era, companies will need to navigate these issues carefully. Clear, transparent ToS will be essential, as will robust content moderation practices that respect user privacy.

For users, this incident serves as a reminder to read ToS carefully and hold companies accountable. It also highlights the need for digital literacy in an age where AI-generated content and misinformation can spread rapidly.

The current terms of service for Adobe don't appear to be as bad as initially feared, but they offer creators a lot of food for thought. Can they continue to trust Adobe to have their best interest in mind as they look to profit off of GenAI? The question remains open.

The Adobe controversy may have subsided, but its lessons will resonate throughout the tech industry for years to come. 

As we continue to grapple with the implications of AI in our digital lives, open dialogue between companies and users will be more important than ever.

Check out our mini episode of Click to Trust, where we delve into the Adobe Terms of Service controversy, here: