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US sues Adobe for ‘deceiving’ subscriptions that are too hard to cancel | The Justice Department alleges that Adobe hid early cancellation fees and trapped consumers in pricey subscriptions

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  • Summary:

    • The US government is suing Adobe for allegedly deceiving customers with hidden fees and making it difficult to cancel subscriptions.
    • The Department of Justice claims Adobe enrolls customers in its most lucrative subscription plan without clearly disclosing important plan terms.
    • Adobe allegedly hides the terms of its annual, paid monthly plan in fine print and behind optional textboxes and hyperlinks.
    • The company fails to properly disclose the early termination fee, which can amount to hundreds of dollars, upon cancellation.
    • The cancellation process is described as "onerous and complicated", involving multiple webpages and pop-ups.
    • Customers who try to cancel over the phone or via live chats face similar obstacles, including dropped or disconnected calls and having to re-explain their reason for calling.
    • The lawsuit targets Adobe executives Maninder Sawhney and David Wadhwani, alleging they directed or participated in the deceptive practices.
    • The federal government began investigating Adobe's cancellation practices late last year.
    • Adobe's subscription model has long been a source of frustration for creatives, who feel forced to stay subscribed to continue working.
    • Recently, Adobe's new terms of service were met with backlash, with some users interpreting the changes as an opportunity for Adobe to train its AI on users' art.
    • The company has also faced regulatory scrutiny in the past, including antitrust scrutiny from European regulators over its attempted $20 billion acquisition of product design platform Figma in 2022, which was ultimately abandoned.
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