Trends
US sues Adobe for ‘deceiving’ subscriptions that are hard to cancel
OUR TAKE The lawsuit reflects a trend toward scrutiny of the digital services industry’s internal sales and subscription models, particularly in the areas of consumer rights and transparency. Adobe’s review of the subscription model of a well-known software company is likely to spark broader industr…
Headline
OUR TAKE The lawsuit reflects a trend toward scrutiny of the digital services industry’s internal sales and subscription models, particularly in the areas of consumer rights and transparency. Adobe’s review of the subscription model of a well-known software company is likely to…
Context
OUR TAKE The lawsuit reflects a trend toward scrutiny of the digital services industry’s internal sales and subscription models, particularly in the areas of consumer rights and transparency. Adobe’s review of the subscription model of a well-known software company is likely to spark broader industry-wide discussion and regulatory attention. –Revel Cheng, BTW reporter The Justice Department alleges that Adobe hid early cancellation fees and trapped consumers in pricey subscriptions.
Evidence
Pending intelligence enrichment.
Analysis
The US government is suing Adobe for allegedly hiding expensive fees and making it difficult to cancel a subscription. In the complaint filed on Monday , the Department of Justice claims Adobe “has harmed consumers by enrolling them in its default, most lucrative subscription plan without clearly disclosing important plan terms.” The lawsuit alleges Adobe “hides” the terms of its annual, paid monthly plan in the “fine print and behind optional textboxes and hyperlinks.” In doing so, the company fails to properly disclose the early termination fee incurred upon cancellation “that can amount to hundreds of dollars,” the complaint says. Customers encounter similar obstacles when attempting to cancel their subscriptions over the phone or via live chats, the DOJ alleges. The complaint claims “subscribers have had their calls or chats either dropped or disconnected and have had to re-explain their reason for calling when they re-connect.” The lawsuit alleges that these practices break federal laws designed to protect consumers. Also read: Adobe’s new Firefly Image 3 adds genAI features to Photoshop
Key Points
- The U.S. government is filing a lawsuit against Adobe, alleging that it did not fully disclose the cost of its subscription and that it was designed to make it difficult for consumers to cancel their subscription.
- When customers do attempt to cancel, the DOJ alleges that Adobe requires them to go through an “onerous and complicated” cancellation process.
Actions
Pending intelligence enrichment.
