The Justice Department lawsuit claims Adobe and its executives ‘deceive consumers’ by hiding termination fees|Ben P L|CC BY-SA 2.0
The government filed a lawsuit against Adobe, known for Photoshop and other design tools, yesterday, accusing the software giant of misleading practices regarding subscription and cancellation fees.
The Justice Department lawsuit claims Adobe and its executives “deceive consumers” by hiding termination fees and enrolling them in costly subscription plans without clear disclosure.
The Federal Trade Commission says Adobe makes important details like high cancellation fees in small print or obscure icons, making it hard for users to spot them. It also deters cancellations by charging half of the remaining payments if users quit early.
Authorities claim Adobe earned $14.22 billion from subscriptions in 2023, up from $7.71 billion in 2019.
The case follows similar federal antitrust actions against Amazon, Google, Apple, Microsoft and Meta recently. It emphasizes the government’s push for an easy-to-understand cancellation process and protections for consumers in the digital marketplace.
Adobe denies the allegations, emphasizing transparency and a simple cancellation policy. Shares of the company fell 1.3% following the news.