Business

US government sues Adobe over deceptive subscription practices

The US government has filed a lawsuit against Adobe, accusing the software giant of deceptive practices related to its subscription services. The Department of Justice alleges that Adobe has been enrolling customers in expensive subscription plans without clearly disclosing important terms, and making it difficult for them to cancel.

In the complaint filed by the Department of Justice, it is claimed that Adobe hides crucial details of its annual subscription plans in fine print and behind optional textboxes and hyperlinks. This lack of transparency leads to customers being unaware of early termination fees that can amount to significant sums of money.

When customers attempt to cancel their subscriptions, they are allegedly subjected to a complex and cumbersome process that involves navigating through multiple webpages and pop-ups. The DOJ further alleges that Adobe imposes early termination fees on customers, creating additional barriers to cancellation.

According to the complaint, customers also face challenges when trying to cancel their subscriptions via phone or live chat. Instances of dropped calls or disconnected chats have been reported, forcing customers to repeat their reasons for canceling. These practices, as per the lawsuit, violate federal consumer protection laws.

The lawsuit not only targets Adobe as a company but also names two executives, Maninder Sawhney and David Wadhwani, for their alleged involvement in the deceptive practices. Both executives are accused of directing or participating in the acts that led to consumer harm.

Adobe has yet to respond to the allegations made by the Department of Justice. The lawsuit comes as a result of the federal government’s scrutiny into Adobe’s subscription cancellation practices, which began late last year.

In a statement, Samuel Levine, director of the FTC’s Bureau of Consumer Protection, criticized Adobe for trapping customers in year-long subscriptions through hidden fees and complicated cancellation processes. He emphasized the importance of transparency and ease of cancellation for consumers.

This legal action against Adobe highlights the growing concern over companies’ subscription practices and the need for clearer disclosure and simpler cancellation procedures. As the case unfolds, consumers and industry experts alike will be watching closely to see how it may impact the future of subscription services in the digital landscape.

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