The U.S. Department of Justice has initiated legal action against Adobe, accusing the company of misleading consumers by concealing the early-termination fees and complicating the cancellation process of their subscriptions.
According to the complaint lodged on Monday, the DOJ asserts that “Adobe has harmed consumers by enrolling them in its default, most lucrative subscription plan without clearly disclosing important plan terms.”
The government contends that Adobe directed consumers toward its “annual paid monthly” subscription without adequately informing them that canceling within the first year would incur significant costs. The DOJ alleges that Adobe only reveals the early-termination fees when subscribers attempt to cancel, effectively trapping them in unwanted subscriptions using these fees as a “powerful retention tool.”
The complaint further claims that Adobe obscures critical terms of its annual paid monthly plan within fine print, textboxes, and hyperlinks, which are designed to be overlooked by consumers. This lack of transparency is coupled with a complex and burdensome cancellation process, according to the DOJ.
In response, Adobe has stated its intention to contest the claims in court. Dana Rao, Adobe’s General Counsel and Chief Trust Officer, defended the company’s practices, stating, “Subscription services are convenient, flexible, and cost-effective, allowing users to choose the plan that best fits their needs, timeline, and budget. Our priority is to always ensure our customers have a positive experience. We are transparent with the terms and conditions of our subscription agreements and have a simple cancellation process.”
The DOJ’s complaint suggests that Adobe’s practices violate federal consumer protection laws. The government seeks “injunctive relief, civil penalties, equitable monetary relief, as well as other relief.”
Adobe transitioned to a subscription-based model in 2012, requiring users to pay recurring fees for software access, replacing the previous one-time payment model. Subscriptions now constitute a major part of Adobe’s revenue, as noted by the Federal Trade Commission.
