US sues Adobe for hiding termination fees and making it difficult to cancel subscriptions

In a move to protect consumers from deceptive business practices, the United States government has filed a lawsuit against Adobe, the popular software company, alleging that it has been hiding termination fees and making it excessively difficult for customers to cancel their subscriptions.

The lawsuit, filed by the Federal Trade Commission (FTC), accuses Adobe of violating the Restore Online Shoppers’ Confidence Act (ROSCA) by failing to clearly disclose the terms of its subscription plans, including the existence of termination fees, and by making it unduly hard for customers to cancel their subscriptions.

According to the FTC, Adobe’s website and marketing materials did not adequately inform customers about the termination fees associated with its Creative Cloud subscription plans. The fees, which can range from $29.99 to $59.99, are charged to customers who cancel their subscriptions before the end of the billing cycle. The FTC alleges that Adobe failed to provide clear and conspicuous disclosures about these fees, violating ROSCA’s requirements.

Furthermore, the lawsuit claims that Adobe made it difficult for customers to cancel their subscriptions by requiring them to navigate a complex and confusing cancellation process. The process, which involves multiple steps and requires customers to interact with Adobe’s customer service representatives, is designed to deter customers from canceling their subscriptions, the FTC alleges.

“Adobe’s practices are unfair and deceptive, and they harm consumers,” said an FTC spokesperson. “Companies must be transparent about their subscription terms and fees, and they must make it easy for customers to cancel their subscriptions if they choose to do so. We will continue to take action against companies that fail to comply with the law.”

The lawsuit seeks to stop Adobe’s allegedly deceptive practices and to require the company to pay refunds to affected customers. The FTC is also seeking civil penalties and other relief to ensure that Adobe complies with ROSCA and other consumer protection laws.

This is not the first time that Adobe has faced criticism for its subscription practices. In recent years, the company has faced backlash from customers and industry observers who have accused it of using aggressive sales tactics and making it difficult for customers to cancel their subscriptions.

In response to the lawsuit, Adobe has denied any wrongdoing and has stated that it will vigorously defend its practices in court. “We believe that our subscription terms and fees are clear and transparent, and we will continue to provide our customers with the best possible experience,” said an Adobe spokesperson.

The lawsuit against Adobe is a reminder to companies that they must comply with consumer protection laws and regulations. As the FTC continues to crack down on deceptive business practices, companies must ensure that they are transparent about their subscription terms and fees, and that they make it easy for customers to cancel their subscriptions if they choose to do so.

In the meantime, customers who believe they have been affected by Adobe’s allegedly deceptive practices can file a complaint with the FTC or seek refunds through the agency’s website.