FTC Sues Photoshop Maker Adobe Over Hidden Fees and Cancellation Hurdles in Subscription Plans

The Federal Trade Commission (FTC) is taking a bite out of software giant Adobe, accusing them of deceptive practices related to their popular subscription plans. The lawsuit, filed in June 2024, alleges Adobe misled customers by burying hefty cancellation fees and making the cancellation process itself a frustrating ordeal.

Hidden Termination Fees

The FTC's complaint centers around Adobe's "annual paid monthly" subscription plan, a popular choice for users of software like Photoshop and Acrobat. According to the lawsuit, Adobe fails to clearly disclose crucial information about early termination fees. These fees, which can reach hundreds of dollars, are allegedly hidden within the fine print of the subscription agreement.

The FTC claims Adobe buries these costs behind hyperlinks and text boxes, making it difficult for customers to understand the true financial commitment they're entering.

To add insult to injury, the lawsuit alleges Adobe calculates the termination fee as 50% of the remaining payments if a customer cancels within the first year. This means someone who cancels halfway through a year-long subscription could be charged a significant sum despite not having access to the software for the full term.

Difficult Cancellation Process

The FTC didn't stop there. The lawsuit further alleges that Adobe makes cancelling a subscription a deliberately complex and frustrating experience. Customers attempting to cancel online are forced to navigate a labyrinth of web pages, jumping through hoops just to reach the cancellation option.

For those who choose the phone route, the situation is reportedly no better. The FTC claims customers often face dropped calls, are forced to repeat their request to multiple representatives, and encounter resistance or delays from customer service personnel.

These tactics allegedly employed by Adobe make it unnecessarily difficult for customers to leave the service, potentially trapping them in unwanted subscriptions and incurring unexpected charges.

Adobe Denies Wrongdoing

Unsurprisingly, Adobe refutes the FTC's claims. The company maintains they are transparent about their subscription terms and conditions, including the cancellation process. They claim to offer a simple and straightforward method for users to cancel their subscriptions.

Legal Battle and Potential Impact

The FTC lawsuit seeks to hold Adobe accountable for these alleged deceptive practices. Potential penalties could include financial repercussions and an injunction to prevent Adobe from continuing these tactics in the future.

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