Adobe ‘trapped customers' in hard-to-cancel subscriptions, FTC says in lawsuit

(The Hill) -- Abobe made it intentionally difficult for customers to cancel subscriptions to its products including Photoshop, “trapping users” in expensive contracts, the Federal Trade Commission (FTC) alleged in a lawsuit filed Monday.

The complaint claims Adobe steered customers towards its “annual paid monthly” subscription option without disclosing cancelation fees that could rise to the hundreds of dollars. 

“Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles,” FTC Consumer Protection Director Samuel Levine said in a statement. “Americans are tired of companies hiding the ball during subscription signup and then putting up roadblocks when they try to cancel.”

The suit also names two of the company’s top executives, Vice President Maninder Sawhney and Senior Vice President David Wadhwani.

It alleges Adobe misled customers by hiding the early termination fee, and using it to pressure customers to keep their subscriptions when they attempted to cancel. 

Customers also faced significant delays in customer service when attempting to cancel their subscriptions, such as dropped calls and chats, and multiple transfers, the FTC said. The agency also noted that some consumers continued to be charged for the service after believing they had canceled it.

Adobe defended its business practices in a statement Monday.

"Subscription services are convenient, flexible and cost effective to allow users to choose the plan that best fits their needs, timeline and budget," General Counsel Dana Rao said in a statement. "Our priority is to always ensure our customers have a positive experience. We are transparent with the terms and conditions of our subscription agreements and have a simple cancellation process."

Adobe Creative Cloud, the software product at the center of the suit, includes access to all of Adobe’s creative products, including the popular Photoshop image editing software. The company controversially transitioned to a subscription-only model for its products instead of a one-time purchase fee in 2012.

A Creative Cloud subscription costs about $90 per month on its monthly plan, $60 per month on the “annual, paid monthly” plan at the center of the suit, and about $55 per month if paid annually up front, according to the company’s site.