The United States Department of Justice (DOJ) has filed a lawsuit against Adobe, the software company behind popular tools like Photoshop and Acrobat, alleging that it deceives consumers with its subscription plans and imposes hidden penalties. The complaint, filed in federal court, accuses Adobe of violating federal consumer protection laws by pushing users into its “annual, paid monthly” subscription plan without adequately disclosing the terms.
According to the lawsuit, which was brought forward by the Federal Trade Commission (FTC), Adobe fails to clearly state that the plan is a year-long commitment. Customers who try to cancel before the year is up are hit with a substantial early termination fee, which can amount to hundreds of dollars—50% of the remaining contract obligation. The government argues that this fee is obscured in fine print and behind hyperlinks, effectively trapping consumers in a costly arrangement they did not fully understand.
The suit also names two senior Adobe executives: Maninder Sawhney, a Senior Vice President, and David Wadhwani, President of the digital media business. It claims Adobe’s cancellation process is deliberately complex and burdensome, requiring users to navigate multiple web pages and pop-ups just to end their subscription.
This legal action is part of a broader effort by the Biden administration to eliminate “junk fees” and combat deceptive business practices. “Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. The lawsuit seeks to secure financial penalties against Adobe and an injunction to halt its current subscription practices. Adobe has stated it will refute the claims in court, maintaining that its practices are transparent.
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