Adobe, maker of Photoshop, sued for ‘trapping’ customers in subscriptions costing $100 a year and charging ‘hidden fees’

ADOBE was sued by the US government for making it difficult for customers to cancel subscriptions.

The Photoshop maker has been accused of harming consumers by hiding high termination fees for its most popular subscription plan.

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The Federal Trade Commission (FTC) sued Adobe on Monday, June 17, alleging that Adobe buries its cancellation fees, which sometimes amount to hundreds of dollars.

The software company was also accused of hiding other important terms in its “annual paid monthly” subscription plan in the fine print or behind text boxes and hyperlinks.

Adobe calculates early termination fees as 50% of remaining payments when consumers cancel in the first year, according to the US government.

The FTC also said that Adobe uses numerous tactics to make it difficult for subscribers to cancel.

Online, said users are forced to browse countless pages unnecessarily.

Those who try to cancel over the phone are often disconnected and forced to repeat what they said to multiple representatives, the lawsuit alleged.

“Adobe has locked customers into one-year subscriptions through hidden early termination fees and numerous cancellation hurdles,” said Samuel Levine, director of the FTC’s consumer protection bureau.

“Americans are tired of companies dropping the ball during subscription and then throwing up roadblocks when they try to cancel.”

However, Dana Rao, Adobe’s general counsel and chief trust officer, said the San Jose-based company will refute the FTC’s allegations in court.

“Subscription services are convenient, flexible and cost-effective to allow users to choose the plan that best suits their needs, timeline and budget,” said Rao.

“We are transparent with the terms and conditions of our subscription contracts and have a simple cancellation process.”

The FTC accused Adobe of violating the Online Shoppers Confidence Restoration Act, a 2010 federal law. law prohibit merchants from imposing charges, including for automatic subscription renewals, unless they clearly disclose material terms and obtain informed consent from customers.

If successful, the lawsuit could result in civil penalties, an injunction against further wrongdoing, and other remedies.

A subscription to Adobe’s Creative Cloud annual paid monthly plan costs $29.99 per month.

FIGHT FOR CUSTOMERS

Adobe isn’t the only company to be sued over its subscription practices.

Last year, New York Attorney General Leticia James sued SiriusXM for “trapping consumers into subscriptions.”

The AG said an investigation found that the broadcasting company “forces its subscribers to call or chat online with an agent to cancel a subscription and then deliberately prolongs these interactions as part of its strategy.”

SiriusXM has approximately 35 million subscribers in the US.

Subscribers can choose from four different plan tiers, starting at $23.99 per month.

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