US sues Adobe over hidden fees, confusing cancellation process

The last few weeks have not been good for software giant Adobe. The Federal Trade Commission (FTC) is suing the company for violating U.S. consumer protection laws, what it says are “hidden termination fees” and an overly complicated process for canceling your Adobe services. The complaint concerns Adobe’s Creative Cloud offering, which bundles various software products.

Earlier this month, Adobe was hit hard by vocal customers who claimed that Adobe’s updated software terms of service gave the company the right to view any work done on Adobe servers. This has led many creatives to leave Adobe altogether and advise others to do the same.

At the same time, disgruntled Adobe employees have come forward with their criticism of Adobe’s communication strategies with its customers.

Adobe plans to start charging users for using its AI features, with an allotment of credits per month. This also doesn’t sit well with many users.

In the current lawsuit, the government alleges that Adobe “hides” the terms of its paid annual monthly plan in “the fine print and behind optional text boxes and hyperlinks.” As a result, the company does not properly disclose early termination fees incurred in the event of a cancellation “which can amount to hundreds of dollars,” the complaint states.

People who call to cancel would get in trouble, be forced to speak to people whose first language is not English, or have their calls interrupted. Others thought they had canceled and are still being charged.

The FTC says these practices violate federal laws designed to protect consumers. The lawsuit is the result of an investigation launched by the FTC last year, focusing on Adobe’s cancellation practices.

The FTC says these practices violate federal laws designed to protect consumers. The lawsuit is the result of an investigation launched by the FTC last year, focusing on Adobe’s cancellation practices. Adobe says it will fight the lawsuit.

We are transparent about the terms and conditions of our subscription agreements and have a simple cancellation process, said Dana Rao, general counsel and director of the trust.

Adobe’s subscription model has also been controversial. It began charging monthly fees for its products in 2012.

You can read the FTC complaint here.