Feds Sue Photoshop Maker Adobe Over Hidden Fees

Reuters reports:

The U.S. government sued Adobe on Monday, accusing the Photoshop and Acrobat maker of harming consumers by concealing hefty termination fees in its most popular subscription plan, and making it difficult to cancel subscriptions.

In a complaint filed in the San Jose, California, federal court, the Federal Trade Commission said Adobe buries the fees, which sometimes reach hundreds of dollars, and other important terms in its “annual paid monthly” subscription plan in the fine print, or behind textboxes and hyperlinks.

According to the complaint, Adobe calculates early termination fees as 50% of the remaining payments when consumers cancel in their first year. The FTC also said Adobe forces subscribers who want to cancel online to navigate unnecessarily through numerous pages, while those canceling by phone are often disconnected.

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BREAKING: The U.S. government is suing Adobe.

It’s accusing the company of harming consumers by enrolling them in the most expensive subscription plans without clearly disclosing the huge early termination fees — fees that can reach hundreds of dollars.

— More Perfect Union (@MorePerfectUS) June 17, 2024

The Justice Department has filed the complaint on behalf of the FTC.

“The lawsuit alleges Adobe ‘hides’ the terms of its annual, paid monthly plan in the ‘fine print and behind optional textboxes and hyperlinks.'”https://t.co/O26xNGU6uh

— More Perfect Union (@MorePerfectUS) June 17, 2024