Adobe imposed hidden cancellation fees, lawsuit claims

SAN FRANCISCO (KRON) — Adobe imposed hidden “early termination fees” on online subscribers and forced them to go through a complex cancellation process to deter them, according to the U.S. Department of Justice. The DOJ announced Monday that it had filed a complaint with the Federal Trade Commission against Adobe.

The lawsuit was filed against Adobe Inc. and two Adobe executives, Maninder Sawhney and David Wadhwani, for alleged violations of the Restore Online Shoppers Confidence Act (ROSCA). The DOJ lawsuit alleges that the company imposed hidden early termination fees on millions of online subscribers.

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The complaint also accuses Adobe of creating a “complex and difficult” cancellation process intended to deter users from canceling their subscriptions. Wadhwani is president of Adobe’s digital media business and Sawhney is vice president of digital marketing and sales for the company, according to the DOJ.

The suit alleges that the defendants “systematically violated ROSCA by using inconspicuous fine print and hyperlinks to hide important information about Adobe’s subscription plans.” The hidden information, the DOJ said, includes “high early termination fees that customers may have to pay when they cancel their subscriptions.”

“Adobe has profited from these hidden fees” for years, the suit claims, “misleading consumers about the true costs of a subscription and ambushing them with the fees when they attempt to cancel.”

The complaint also alleges that Adobe failed to provide its customers with a simple mechanism to cancel their recurring subscription. Instead, the DOJ said the company subjected customers to a “convoluted and inefficient cancellation process filled with unnecessary steps, delays, unsolicited offers, and warnings.”

“Businesses that sell goods and services over the Internet have a responsibility to clearly and conspicuously disclose important information to consumers,” said United States Attorney Ismail J. Ramsey of the Northern District of California. “It is essential that businesses take this responsibility to ensure a healthy and fair market for all participants. Those who fail to do so and take advantage of consumer confusion and vulnerability for their own gain will be held accountable.”

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