US government sues Adobe over 'deceptive' subscription practices
The US government has initiated a lawsuit against Adobe, a leading software company. The Department of Justice (DOJ) accuses Adobe of concealing costly fees and complicating the cancellation process for customers. The DOJ alleges that Adobe "has harmed consumers by enrolling them in its default, most lucrative subscription plan without clearly disclosing important plan terms."
Adobe accused of hiding subscription terms
The DOJ claims that Adobe obscures the terms of its annual, paid monthly plan in the "fine print and behind optional textboxes and hyperlinks." This alleged lack of transparency results in customers being unaware of the early termination fee they would incur upon cancellation. The lawsuit also accuses Adobe of making it difficult for customers to cancel their subscriptions, requiring them to navigate through multiple webpages and pop-ups.
Adobe's cancellation process discourages customers
The DOJ alleges that Adobe's cancellation process is "onerous and complicated," potentially discouraging customers from canceling their subscriptions. The lawsuit also claims that Adobe "ambushes" customers with an early termination fee when they attempt to cancel. Similar difficulties are encountered by customers trying to cancel their subscriptions over the phone or via live chats, with reports of calls or chats being dropped or disconnected.
Adobe executives targeted in lawsuit
The complaint also targets two senior executives at Adobe: Maninder Sawhney, the senior vice president of digital go-to-market and sales, and David Wadhwani, the president of the company's digital media business. Both executives are accused of having directed, controlled, or participated in these alleged deceptive practices. "Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles," said Samuel Levine, director of the FTC's Bureau of Consumer Protection.
Adobe denies allegations
In response to the lawsuit, Adobe's general counsel and chief trust officer, Dana Rao, denied the allegations. Rao stated that Adobe is transparent with its subscription agreements' terms and conditions, and has a simple cancellation process. "We will refute the FTC's claims in court," said Rao. The lawsuit follows a wave of customer outrage over Adobe's latest terms of service and concerns over the company's use of customer work to train its AI models.
