Covered in Shady Dealings, Adobe Sued For Its Corrupt Practices

The FTC took action after receiving numerous complaints from consumers across the country.

Covered in Shady Dealings, Adobe Sued For Its Corrupt Practices

[] –The US government has filed a lawsuit against Adobe and two of its senior executives, alleging deceptive practices related to subscription cancellations and early termination fees for Adobe products.

According to the complaint filed by the Department of Justice, Adobe is accused of misleading consumers by not clearly disclosing early termination fees associated with its “annual paid monthly” subscription plan. The government asserts that Adobe obscured these fees in fine print or through inconspicuous icons, thereby making cancellation procedures unnecessarily difficult.

Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, emphasized the frustration felt by consumers who encounter hidden obstacles when attempting to cancel subscriptions. He stated, “Americans are tired of companies hiding the ball during subscription signup and then putting up roadblocks when they try to cancel.”

In response, Dana Rao, Adobe's General Counsel and Chief Trust Officer, declared the company's intent to contest the FTC’s allegations in court. Rao defended Adobe’s subscription model as beneficial for users, offering flexibility and transparency in terms and conditions, including a straightforward cancellation process.

The FTC initiated action against Adobe following widespread consumer complaints across the United States regarding undisclosed early termination fees. The agency noted that Adobe persisted in these practices despite awareness of consumer confusion, further complicating cancellation attempts through issues like dropped calls and transfers between customer service representatives.

This legal action by the FTC comes amidst public outcry over Adobe’s recent terms of service, particularly concerns over ambiguous language regarding the company’s rights to use user-generated content for training its AI models. In response to backlash, Adobe has pledged updates to its terms of service to provide clearer explanations regarding AI usage and content ownership.