The United States government has filed a lawsuit against Adobe, alleging that the software company’s practices violate consumer protection laws.
According to The Federal Trade Commission (FTC), Adobe’s use of “hidden” termination fees and a complex cancellation process is deceptive and harmful to consumers.
Adding that the firm had failed to clearly disclose its terms to customers, including the year-long length of a subscription and charges that would be triggered for cancelling early.
In its complaint, the agency said Adobe had refused to modify its behaviour because it would hurt the company financially.
Reacting to the claims, Adobe stated that it would fight the lawsuit.
“We are transparent with the terms and conditions of our subscription agreements and have a simple cancellation process,” said Dana Rao, general counsel and chief trust officer.
“We will refute the FTC’s claims in court,” he added.
Adobe, founded in 1982, is known for software used to edit photos and PDFs, including Adobe Photoshop.
It adopted a subscription-based sales model around 2012 for its offerings, asking customers to pay a monthly or annual fee.
According to BBC report, US Government complaint states that the company’s sign-up process is unclear, according to the complaint, in some cases failing to disclose that customers are making a commitment to pay for a year and not stating the cost of cancelling early, even though the fee can amount to hundreds of dollars.
If customers try to cancel, the company also allegedly takes them through a “convoluted process”, requesting re-entry of their password and navigation past multiple pop-up screens, the complaint suggests.
“Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a press announcement.
“Americans are tired of companies hiding the ball during subscription signup and then putting up roadblocks when they try to cancel,” Mr Levine added.
