The U.S. Department of Justice has recently taken action against software giant Adobe, accusing the company of deceiving consumers and making it challenging for them to cancel their subscriptions. The lawsuit alleges that Adobe hides important plan terms, particularly regarding early-termination fees, and pushes consumers towards a subscription plan without clear disclosure.
According to the complaint filed by the DOJ, Adobe enrolls customers in its “annual paid monthly” subscription plan without adequately informing them that canceling within the first year would incur significant costs. It is only when subscribers attempt to cancel that they are made aware of the early-termination fees. The complaint goes on to state that Adobe uses these fees as a “powerful retention tool,” effectively trapping customers in subscriptions they no longer want.
The DOJ further alleges that Adobe intentionally obscures material terms of its subscription plan during the enrollment process. These terms are often hidden in fine print, behind option textboxes and hyperlinks, making them difficult for consumers to notice. As a result, most consumers never see these disclosures. Additionally, Adobe employs a complex and burdensome cancellation process, discouraging users from canceling their subscriptions.
When approached for comment, Adobe did not immediately respond to TechCrunch’s request. The complaint asserts that Adobe’s actions violate federal laws put in place to protect consumers. The government seeks injunctive relief, civil penalties, equitable monetary relief, and other appropriate measures.
This lawsuit comes after Adobe transitioned to a subscription-based model in 2012, shifting away from the one-time fee structure previously used. Today, subscriptions account for the majority of Adobe’s revenue, as noted by the Federal Trade Commission.
The DOJ’s lawsuit against Adobe sheds light on an important issue impacting consumers in the software industry. By alleging deceptive practices and non-disclosure of crucial terms, the government is taking a stand to protect consumers’ rights. This case serves as a reminder for companies to prioritize transparency and ensure that customers have a clear understanding of the terms and conditions of their subscriptions. It also highlights the need for regulatory measures to safeguard consumers in an increasingly subscription-based economy.
