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US sues Adobe, alleging early termination fees and making subscriptions difficult to cancel

The U.S. government has indicted Adobe and two senior company executives, accusing them of defrauding consumers by concealing early termination fees and arranging them to cancel their Adobe product subscriptions.

this complain The U.S. Department of Justice filed a lawsuit on Monday accusing Adobe of pushing consumers to adopt “pay-per-year” subscription plans without fully disclosing that canceling the plan within the first year could result in early termination fees. The complaint also alleges that Adobe’s early termination fee disclosures are buried in the fine print or require consumers to hover over a small icon to find them.

“Americans are tired of companies hiding the ball during subscription sign-up and then erecting roadblocks when trying to cancel,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a report. statement. “The FTC will continue to work to protect Americans from these illegal business practices.”

Dana Rao, Adobe’s general counsel and chief fiduciary officer, said the company will fight the FTC in court. in a statement In a message posted on the company’s website, Rao said: “Subscription services are convenient, flexible and cost-effective, allowing users to choose the plan that best suits their needs, schedule and budget. Our priority is to always ensure that our customers have Positive experience.

The FTC said it took action against Adobe after receiving complaints from consumers across the country who said they were unaware of Adobe’s early termination fees. It noted that Adobe continued this practice despite being aware of consumer confusion. The FTC statement added that any consumers who contact Adobe customer service to cancel their subscriptions will encounter additional obstacles, such as disconnections, chats, and being routed to multiple representatives.

The FTC’s action comes after customers were outraged by Adobe’s latest terms of service. The user is worried Adobe’s vague language suggests the company is free to use their work to train its generative AI models. In response to backlash, Adobe declare has updated its terms of service to provide more details on areas such as artificial intelligence and content ownership.

Updated, June 17, 2024, 1:39 pm ET: This story has been updated with a statement from Adobe.

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