The US government sued Adobe for allegedly hiding expensive cancelation fees and non-disclosing important subscription terms.
The Department of Justice (DOJ) claims that Adobe hides crucial subscription terms behind fine print and optional textboxes when offering its subscription services to consumers.
Adobe Accused of Purposely Hiding Important Terms, Conditions
In the complaint filed on June 17, the DOJ stated that Adobe has been harming its consumers by enrolling them in a lucrative subscription plan without disclosing important terms. The Annual, Paid Monthly (APM) plan locks subscribers to a year-long commitment with an expensive early termination fee (ETF).
According to the document, the APM cancellation fee costs hundreds of dollars. The ETF is allegedly only shown to customers once they attempt to cancel, forcing them to stay with their unwanted subscription.
"Adobe ambushes subscribers with the previously obscured ETF when they attempt to cancel," the government added. It is also concluded that the company has violated federal laws, failing to protect consumers.
FTC Pushes Legal Action Against Adobe, Executives
In a press release, the Federal Trade Commission announced that it is taking legal action against the company and two of its executives. Maninder Sawhney and David Wadhwani are now under scrutiny for deceiving customers.
FTC shared that it will continue to protect American consumers against companies that hide subscription terms and implement roadblocks upon cancelation. Adobe's ETF disclosure was found on the company's website in small print.
In 2012, Adobe transitioned to a subscription model, promoting its services by requiring payment from consumers. Over the years, several consumers have complained about the company's subscription policies.
Adobe maintains its practice of luring consumers with its APM plan despite being aware of the complaints. Several customers also experience resistance from Adobe representatives upon seeking help to cancel their subscriptions.
