The US Department of Justice has filed a complaint in federal court against software giant Adobe, following a referral from the Federal Trade Commission, the country’s agency responsible for antitrust matters.
The complaint targets Adobe and two of its executives, SVP of Digital Media, Digital GTM and Sales Mininder Sawhney and Chief Business Officer of Digital Media David Wadhwani, accusing them of hiding fees and creating hurdles for consumers trying to cancel their subscriptions. To cancel.
The DOJ’s complaint criticizes Adobe for directing consumers to its annual subscriptions, which are paid monthly, by pre-selecting the option during account creation.
The US wants to sue Adobe
According to the complaint, crucial details, such as early cancellation fees if canceling within the first year, are hidden during the application process. Other information, such as billing and renewal terms and subscription duration, would also be hidden. Instead, they would be hidden behind icons or in small print on the website.
Consumers who cancel before their annual contract is up will face a fee equal to 50% of the remaining payments, potentially costing hundreds of dollars.
The complaint alleges that Adobe’s tactics are not coincidental, stating that the company knowingly complicates the cancellation process by creating an “obstacle course of screens and clicks.”
Additionally, the DOJ claims that customers face even more obstacles, such as dropped calls, interrupted chats, and multiple transfers, making it even more difficult to cancel.
An FTC announcement summarizes: “Adobe, Wadhwani and Sawhney violated ROSCA and the FTC Act by failing to obtain consumers’ express informed consent before charging their credit card, debit card or other account.”
In a statement to customers facing dodgy subscription terms across the board, the FTC said: “If your company uses a subscription model, filing the lawsuit should signal to you that the FTC is continuing its fight against hidden terms, hidden costs and complicated cancellation procedures.”