Now the US Government Is Suing Adobe
Adobe just can’t catch a break. After new terms of service raised eyebrows earlier this month that had users worried the company would rummage through their files and potentially train AI to do their work , the Photoshop maker is now under fire from the Federal Trade Commission , this time for… for alleged unfair pricing. A government organization is suing Adobe over hidden fees and difficulty canceling subscriptions.
In a complaint filed Monday , the Federal Trade Commission said, “Adobe harmed consumers by enrolling them in its most lucrative subscription plan by default without clearly disclosing important terms of the plan.” In a related blog post, the regulator criticized Adobe for failing to clarify that the subscription is an annual commitment, with cancellations subject to 50% of any remaining payments, which could amount to “hundreds of dollars.” Adobe’s poor treatment of customers who try to cancel their subscription. “Callers’ calls or chats were either interrupted or disconnected, and they had to re-explain the reason for the call when reconnected,” the complaint states.
In a statement, FTC Bureau of Consumer Protection Director Samuel Levin said: “Americans are tired of companies that hide the facts when they sign up for a subscription and then create obstacles when they try to cancel it.”
The lawsuit directly targets Adobe executives Maninder Soni and David Wadhwani, accusing them of their control and authority to carry out these practices.
The complaint follows an investigation that began in 2022. Even though Adobe is aware of the increased scrutiny, “Adobe nevertheless continues to violate the rules to this day,” the FTC says.
Adobe currently lists 20 different plans for individual subscribers on its website , with more options available by clicking on the cards listed. The Creative Cloud All Apps plan, which has a “Best Price” banner, states that “cancellations after 14 days will incur a fee” for the “Annual, Billed Monthly” tier, although it doesn’t provide plan details. amount even when you hover over the information button. Customers can enter payment information without seeing the final amount.
In a statement released to the company’s newsroom, Adobe General Counsel and Chief Trustee Officer Dana Rao said: “We are transparent about the terms of our subscription agreements and have a simple cancellation process. We will fight the FTC’s claims in court.”