The United States government is suing computer software company Adobe, alleging that it concealed early cancellation fees and made it difficult to cancel subscriptions to its products.
The U.S. Department of Justice (DOJ) filed a complaint following the Federal Trade Commission (FTC) referral on Monday. In the complaint, the DOJ argues that Adobe “has harmed consumers by enrolling them in its default, most lucrative subscription plan without clearly disclosing important plan terms.” Interestingly, the DOJ alleges that Adobe failed to disclose to consumers that sign up for an “Annual, Paid Monthly” subscription plan that they actually agreed to a year-long agreement, or else they would receive a pricey termination fee for canceling, arguing it was a “powerful retention tool” that trapped customers.
FTC takes action against Adobe and executives for hiding fees, preventing consumers from easily cancelling software subscriptions: https://t.co/tJ7J3tLxc4 /1
— FTC (@FTC) June 17, 2024
When customers try to cancel, the DOJ alleged that Adobe would deter the process by rolling out a convoluted cancellation process where customers faced several obstacles that “impede or delayed their attempts to cancel.” Among these examples are customers who have had their phone calls or live chats end and have to re-explain the reason for their inquiry to the representative.
“Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles,” FTC Director of Bureau Consumer Production Samuel Levine wrote in a press release. “Americans are tired of companies hiding the ball during subscription signup and then making roadblocks when they try to cancel. The FTC will continue working to protect Americans from these illegal business practices.
An abridged rundown on Adobe’s common criticisms
Adobe is one of the largest software companies specializing in design and productivity software apps like Photoshop and Illustrator. Over the years, those who begrudgingly subscribe to the service for professional purposes have criticized the company for its subscription mode. Its cancellation fees have also been controversial. In 2021, the company received backlash after one user posted a screenshot on X/Twitter of them being charged nearly $300 after canceling their Creative Cloud: All Apps subscription.
More recently, Adobe was under fire earlier this month after it updated the Terms of Service for Photoshop, which read that “[Adobe] may access your content through both manual and automated methods, such as for content review.” This caused backlash as this work also included projects that were under NDA and suggested Adobe would use this content to train its AI models. Adobe would later rework its Terms in an attempt to clarify some accusations that were made against the company.
Taylor is a Reporter at IGN. You can follow her on Twitter @TayNixster.
