US government Sues Adobe Over Software Subscription Charges

Adobe Software Subscription Lawsuit: The US government filed suit against Adobe on Monday for reportedly making its subscriptions costly to cancel.

The government highlighted that Adobe failed to adequately disclose hefty early termination fees, sometimes reaching hundreds of dollars, when customers sign up for “annual, paid monthly” subscription plans.

Adobe Software Subscription Lawsuit

The complaint targets Adobe and two of its executives, SVP for Digital Media, Digital GTM and Sales Mininder Sawhney, and Chief Business Officer for Digital Media David Wadhwani.

The suit reads, “During enrollment, Adobe hides material terms of its APM plan in fine print and behind optional text boxes and hyperlinks. This provides disclosures designed to go unnoticed and that most consumers never see.” 

The suit further reads, “As part of this convoluted process, Adobe ambushes subscribers with the previously obscured ETF when they attempt to cancel. Through these practices, Adobe has violated federal laws designed to protect consumers.”

Subscription Lawsuit Caused By Unfair Canceling Cost

Consumers who cancel before their annual contract finishes face a fee amounting to 50% of the remaining payments, potentially costing hundreds of dollars.

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The complaint claims that Adobe’s tactics are not accidental. It states that the company knowingly complicates the cancellation process by creating an “obstacle course of screens and clicks.”

Most complaints leading to the lawsuit were logged by the Better Business Bureau and the FTC. 

Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said, “Americans are tired of companies hiding their impact during subscription sign-up and then putting up roadblocks when they try to cancel. The FTC will continue working to protect Americans from these illegal business practices.”