US Sues Adobe for Deceptive Subscription Practices

The U.S. government has initiated legal action against Adobe, alleging that the company has engaged in deceptive practices related to its subscription services. According to the Department of Justice (DOJ), Adobe has intentionally obscured the terms and fees associated with its subscriptions, making it difficult for consumers to cancel without incurring significant charges.

This legal action is part of a broader trend of regulatory scrutiny facing Adobe. In 2012, the company transitioned from selling its creative software as lifetime licenses to offering them exclusively through subscription models, a move that has been met with significant frustration from the creative community. Many professionals feel locked into these subscriptions as they rely on Adobe’s software for their work.

Key executives at Adobe, including Maninder Sawhney, senior vice president of digital go-to-market and sales, and David Wadhwani, president of the digital media business, are also named in the lawsuit. The complaint alleges that these executives had the authority and control over the deceptive practices in question. Adobe has yet to issue a public response to the allegations.

The lawsuit, filed on Monday, contends that Adobe has been enrolling customers into its most lucrative subscription plans by default, without providing clear and transparent information about the terms. Specifically, the DOJ claims that Adobe “hides” the details of its annual plans with monthly payments in fine print, often buried “behind optional textboxes and hyperlinks.” As a result, customers are frequently unaware of the substantial early termination fees “that can amount to hundreds of dollars” if they decide to cancel their subscriptions.

The DOJ further alleges that Adobe has designed its cancellation process to be intentionally cumbersome. Customers attempting to cancel their subscriptions online must navigate through multiple webpages and pop-ups, only to be confronted with unexpected early termination fees. This complex process is said to discourage many users from completing their cancellations. Additionally, those who try to cancel over the phone or through live chats reportedly face similar difficulties, including disconnected calls and the need to repeatedly explain their cancellation reasons.