US sues Adobe for hiding fees, creating ‘cancellation hurdles’

MANILA, Philippines – The US government on Monday, June 17, sued Photoshop maker Adobe, alleging the company hid termination fees and made it difficult for consumers to cancel their subscriptions. The lawsuit also cited two Adobe executives as individual defendants: David Wadhwani, president of digital media business, and Maninder Sawhney, a senior vice president for digital sales.

The US Department of Justice (DOJ), in the suit against Adobe, claims that during enrollment, “Adobe hides material terms of its APM (annual, paid monthly) plan in fine print and behind optional textboxes and hyperlinks, providing disclosures that are designed to go unnoticed and that most consumers never see. Adobe then deters cancellations by employing an onerous and complicated cancellation process.”

If users have gotten that far, then Adobe “ambushes subscribers” with the hidden early termination fee when they attempt to cancel.

According to The Verge, the DOJ also said similar hurdles were placed in the way of consumers if they tried to cancel over the phone or via live chat, including having calls or chats dropped or disconnected. Consumers would then have to redo the process and re-explain their reasons for going through chats or calls upon reconnection.

In all, the lawsuit alleges these practices break federal laws designed to protect consumers.

In a press release, Samuel Levine, director of the US Federal Trade Commission’s consumer protection bureau, said Adobe “trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles.”

He added, “Americans are tired of companies hiding the ball during subscription signup and then putting up roadblocks when they try to cancel.”

Dana Rao, Adobe’s general counsel and chief trust officer, said it would refute the claims in court, Reuters reported.

“Subscription services are convenient, flexible, and cost effective to allow users to choose the plan that best fits their needs, timeline and budget,” Rao said.

“We are transparent with the terms and conditions of our subscription agreements and have a simple cancellation process,” Rao added. – Rappler.com