Adobe is being sued by the US government for allegedly concealing costly costs and making it impossible to terminate a subscription. The Department of Justice asserts that Adobe “has harmed consumers by enrolling them in its default, most lucrative subscription plan without clearly disclosing important plan terms” in a lawsuit that was submitted on Monday.
According to the lawsuit, Adobe hides the details of its monthly, annual subscription in the “fine print and behind optional textboxes and hyperlinks.” In doing so, the complaint claims that the business neglects to appropriately explain the early termination cost that is charged upon cancellation and “can amount to hundreds of dollars.”
The DOJ claims that when users try to cancel, Adobe forces them to go through a “onerous and complicated” cancellation process that includes traveling through numerous pop-ups and webpages. The early termination cost is then purportedly used to “ambush” clients, discouraging them from canceling.
Consumers who try to cancel their memberships via live chat or over the phone have comparable difficulties, according to the DOJ. “Subscribers have experienced their calls or chats either dropped or disconnected and have had to re-explain their reason for calling when they re-connect,” according to the complaint. The lawsuit claims that these actions are illegal under federal statutes intended to safeguard consumers.
FTC Alleges Adobe Executives Orchestrated Subscription Deception Amid Mounting Consumer Backlash
The company’s president of digital media, David Wadhwani, and senior vice president of digital go-to-market and sales, Maninder Sawhney. According to the complaint, both executives were involved in the conduct and practices of Adobe, either by directing, controlling, or having the authority to do so. Adobe did not respond to a request for comment right away.
Samuel Levine, head of the FTC’s Bureau of Consumer Protection, stated in a statement that “Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles.” “People in America have had enough of businesses hiding things from them when they sign up for subscriptions and then creating obstacles in their way when they try to cancel.” Late last year, the federal government started investigating Adobe’s cancellation policies.
Adobe changed the way it sold its creative software in 2012. Instead of offering lifetime access, users now have to pay a monthly or annual membership fee to use Photoshop, Illustrator, InDesign, and other tools in the suite. Creatives have long been irritated by the company’s subscription model since they are frequently compelled to maintain their Adobe subscription in order to continue performing their duties.
The revised terms of service from Adobe caused controversy earlier this month when some people saw it as a chance to train their AI on user artwork.
The case illustrates how Adobe is still under regulatory investigation. After receiving antitrust investigation from European regulators, Adobe withdrew its $20 billion proposal to purchase the product design platform Figma in 2022.
