US files lawsuit against Adobe for “putting up roadblocks” in cancelling subscriptions

The United States government has filed a lawsuit against Adobe, accusing the software company of deceiving consumers by hiding early termination fees and making it difficult for customers to cancel their subscriptions. The Department of Justice (DOJ) alleges that Adobe's practices have harmed consumers and violated federal laws designed to protect them.

According to the complaint filed on Monday, Adobe pushed consumers toward its "annual paid monthly" subscription plan without clearly disclosing that cancelling the plan within the first year could result in hefty early termination fees amounting to hundreds of dollars. The DOJ claims that Adobe hid these important terms "in fine print and behind optional textboxes and hyperlinks."

Samuel Levine, director of the Federal Trade Commission's Bureau of Consumer Protection, stated, "Americans are tired of companies hiding the ball during subscription signup and then putting up roadblocks when they try to cancel. The FTC will continue working to protect Americans from these illegal business practices."

The lawsuit also targets two senior Adobe executives, Maninder Sawhney and David Wadhwani, alleging that they "directed, controlled, had the authority to control, or participated in the acts and practices of Adobe."

When customers attempted to cancel their subscriptions, Adobe allegedly made the process onerous and complicated, requiring them to navigate through multiple webpages and pop-ups. The government claims that customers faced similar obstacles when trying to cancel over the phone or via live chat, with calls being dropped or disconnected.

In response to the lawsuit, Adobe's General Counsel and Chief Trust Officer, Dana Rao, said, "We are transparent with the terms and conditions of our subscription agreements and have a simple cancellation process. We will refute the FTC's claims in court."

The government's action follows numerous complaints from consumers across the country who were unaware of Adobe's early termination fees and faced difficulties when trying to cancel their subscriptions.

Adobe shifted to a subscription-based model in 2012, requiring users to pay for access to its software on a recurring basis. Subscriptions now account for most of the company's revenue. The lawsuit seeks injunctive relief, civil penalties, and equitable monetary relief to address Adobe's alleged violations of federal consumer protection laws.