US Government Files Lawsuit Against Adobe for Deceptive Practices in Subscription Terminations
Money | June 17, 2024, 12:23 p.m.
The U.S. Department of Justice has filed a lawsuit against Adobe, accusing the company of deceiving consumers by hiding early-termination fees and making it difficult to cancel subscriptions. The complaint alleges that Adobe enrolls customers in its most expensive plan without clearly disclosing important terms, pushing them towards costly annual subscriptions. The DOJ claims Adobe traps consumers by only revealing termination fees when they try to cancel, using it as a retention tactic. Adobe defends its practices, stating they prioritize customer experience and transparent terms. The government seeks relief for federal law violations and unfair consumer treatment. Adobe's shift to a subscription model in 2012 has led to most of its revenue coming from subscriptions, highlighting the importance of clear disclosure and fair treatment of consumers in the digital era.