US Government sues Adobe over deceptive plan that trap users in subscription

The US Department of Justice (DOJ) filed a lawsuit against Adobe on Monday, accusing the company of deceptive practices related to its subscription plans. The lawsuit alleges that Adobe hides expensive fees under fine print, making it difficult for customers to cancel their subscriptions.

“Adobe has harmed consumers by enrolling them in its default, most lucrative subscription plan without clearly disclosing important plan terms,” the DOJ claims in the complaint. “Adobe fails to adequately disclose to consumers that by signing up for the ‘Annual, Paid Monthly’ subscription plan (‘APM plan’), they are agreeing to a year-long commitment and a hefty early termination fee (‘ETF’) that can amount to hundreds of dollars.”

1. @FTC has taken action against Adobe and two executives for pushing people into subscriptions and then making it absurdly hard to cancel.

Adobe ambushed users with hefty "early termination fees" and threw up obstacles when people tried to cancel.https://t.co/lyWAv4GMm1

— Lina Khan (@linakhanFTC) June 17, 2024

“These deceptive tactics trap customers into unwanted subscriptions,” director of the FTC’s Bureau of Consumer Protection Samuel Levine said in a statement. “Americans are tired of companies hiding the ball during subscription signup and then putting up roadblocks when they try to cancel.”

According to the complaint, Adobe hides the terms of the plan “behind optional textboxes and hyperlinks” and forces customers to navigate through “multiple webpages and pop-ups” to cancel. The lawsuit also alleges similar difficulties for those attempting to cancel by phone or live chat, with dropped calls and a requirement to re-explain their reason for cancellation.

This lawsuit is the latest in a series of challenges for Adobe’s subscription model. In 2012, the company shifted from selling its creative software for a one-time fee to a subscription model, a change that frustrated many creatives who rely on these programs for their work.

Adobe’s recent mishaps

The latest lawsuit also comes on the heels of Adobe’s controversial new terms of service, which raised concerns about user privacy and data collection practices. Adding to this, Adobe employees are reportedly unhappy about how the company handled the AI controversy.

And speaking of the AI controversy, Adobe also got under fire over selling AI-generated “Ansel Adams-style” work. The Ansel Adams Estate took to Threads to express their frustration with Adobe over AI work “inspired” by photos of the iconic photographer.

We have reached out to Adobe for comment and will update the article if we hear back.

[via The Verge]

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