The US government sues Adobe, accusing the software company of difficulties related to subscription cancellation fees and processes
According to a lawsuit filed by the U.S. Department of Justice, Adobe has been accused of deceiving consumers by concealing the early-termination fee and making it challenging for individuals to terminate their subscriptions.
The Department of Justice (DOJ) stated in the complaint it filed on Monday that “Adobe has harmed consumers by enrolling them in its default, most lucrative subscription plan without clearly disclosing important plan terms.”
The government accuses Adobe of pushing consumers toward the “annual paid monthly” subscription without disclosing that discontinuing the plan during the first year would cost hundreds of dollars.
The complaint alleges that Adobe only discloses the early-termination fees when subscribers attempt to cancel, and it transforms the cost into a “powerful retention tool” by ensnaring consumers in subscriptions they no longer desire.
“According to the complaint, Adobe conceals material terms of its APM plan in fine print and behind option textboxes and hyperlinks during enrollment, demonstrating disclosures intended to be imperceptible and that the majority of consumers never observe.”
Subsequently, Adobe implements an intricate and cumbersome cancellation procedure to discourage cancellations.
Adobe intends to contest the allegations in court.
In a statement, Adobe’s General Counsel and Chief Trust Officer, Dana Rao, stated that subscription services are cost-effective, flexible, and convenient, enabling users to select the plan that best suits their requirements, timeline, and budget.
“Our foremost objective is to guarantee our clients an enjoyable experience.”
Our subscription agreements are transparent in terms and conditions, and we offer a straightforward cancellation procedure.
According to the Department of Justice’s complaint, Adobe has been accused of violating federal laws that are intended to safeguard consumers. The government requests “injunctive relief, civil penalties, equitable monetary relief, and other relief.”
In 2012, Adobe transitioned to a subscription model, necessitating that consumers pay for software access regularly. The company’s software was previously accessible to consumers upon payment of a one-time fee.
:max_bytes(150000):strip_icc()/the-us-federal-trade-commission--ftc--bu-71968930-e5e36febe53543aaa53329c6c17fc982.jpg "US sues Adobe: Subscription Cancellation Hurdles, Hidden Fees - Protechbro: Top Stories on Bitcoin, Ethereum, Web3, & Blockchain")
The Federal Trade Commission, which initiated a comparable litigation against Amazon last year, asserts that the company “knowingly” complicates the process of canceling Prime service subscriptions, which comprise the majority of the company’s revenue.