US sues Adobe for ‘deceptive’ subscriptions that are very difficult to cancel

The US government is suing Adobe for allegedly hiding expensive fees and making it difficult to cancel a subscription. At the complaint filed on Mondaythe Department of Justice claims that Adobe “harmed consumers by enrolling them in its standard, more lucrative subscription plan without clearly disclosing important plan terms.”

The suit alleges that Adobe “hides” the terms of its annual paid-monthly plan in the “fine print and behind optional text boxes and hyperlinks.” In doing so, the company fails to adequately disclose the early termination fee incurred upon cancellation “which can amount to hundreds of dollars,” the complaint says.

When customers try to cancel, the DOJ alleges that Adobe requires them to go through a “onerous and complicated” cancellation process that involves navigating multiple web pages and pop-ups. It then allegedly “ambushes” customers with an early termination fee, which may discourage them from canceling.

Customers encounter similar obstacles when trying to cancel their subscriptions via phone or live chat, the DOJ alleges. The complaint states that “subscribers had their calls or chats interrupted or disconnected and had to re-explain the reason for the call when they reconnected.” The lawsuit alleges that these practices violate federal laws designed to protect consumers.

The lawsuit also targets Adobe executives Maninder Sawhney, senior vice president of go-to-market and digital sales, as well as David Wadhwani, president of the company’s digital media business. The complaint says both executives “directed, controlled, had authority to control, or participated in the acts and practices of Adobe.” Adobe did not immediately respond to a request for comment.

“Adobe has locked customers into one-year subscriptions through hidden early termination fees and multiple cancellation hurdles,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. said in a statement. “Americans are tired of companies dropping the ball during subscription and then throwing up roadblocks when they try to cancel.” The federal government began investigating Adobe’s cancellation practices late last year.

In 2012, Adobe stopped selling its creative software for lifetime use and started charging users a monthly or annual subscription to its suite of products, including Photoshop, Illustrator, InDesign and others. The company’s subscription model has long frustrated creatives, who are often forced to remain Adobe subscribers to continue doing their work. Earlier this month, Adobe’s new terms of service were met with backlash after some interpreted the change as an opportunity to train its AI on users’ art.