A complaint against Adobe Inc. was filed today by the US Department of Justice (DOJ) upon referral by the Federal Trade Commission (FTC) over ‘harming consumers’ for years of not being clear about its plan terms among others.
Adobe Sued by US FTC and DOJ
The complaint was filed today against Adobe, most known for its softwares like Acrobat, Photoshop, and Illustrator. It claims that Adobe hasn’t been clear about its Adobe Creative Cloud subscription terms that is “Annual, Paid Monthly” (APM) which has harmed consumers.
“Adobe fails to adequately disclose to consumers that by signing up for the “Annual, Paid Monthly” subscription plan (“APM plan”), they are agreeing to a year-long commitment and a hefty early termination fee (“ETF”) that can amount to hundreds of dollars,” the complaint states.
This is said to be clearly stated when the customer tries to cancel which turns the ETF to a “powerful retention tool by trapping consumers in subscriptions they no longer want.”
The material terms of its APM plan are also said to be listed in fine print and behind optional textboxes and hyperlinks that are easy to miss.
The document also mentions that this is a common complaint in the Better Business Bureau, social media, and the company’s support pages. This spans both the confusion about the APM plan as well as the ETF.
Adobe Website Check
Upon checking the website for ourselves, the plans page reveals the monthly fee and it mentions an annual subscription which consumers can cancel within 14 days for a full refund. The main highlight is the monthly fee and average users won’t even notice the Annual Subscription subtext.
This is even heightened when you click the “Buy now” button which leads you to a box that has an Annual, paid monthly option selected by default. Again, the monthly fee is highlighted here, so unless you read everything, it isn’t hard to sign up for the APM plan.
Moreover, there’s the ETF is only mentioned if you hover the “i” next to the refund highlight.
Adobe Response
Adobe has since released a statement in response to the complaint defending its subscription service.
“Subscription services are convenient, flexible, and cost-effective to allow users to choose the plan that best fits their needs, timeline, and budget. 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. We will refute the FTC’s claims in court.”
Dana Rao, Adobe General Counsel and Chief Trust Officer
We’ll have to wait and see what comes out of this complaint maybe in the following months. If you’re interested in reading the full complaint, click here.
FAQ
Q: What is Adobe accused of?
A: Adobe is accused of not being clear about its “Annual, Paid Monthly” subscription terms, leading to consumer harm.
Q: What are the issues with the APM plan?
A: The APM plan allegedly traps consumers with a year-long commitment and a hefty early termination fee.
Q: What has Adobe said in response to the US complaint?
A: It defends its subscription service, claiming transparency and a simple cancellation process.
Sources 1, 2 | Featured Image
Ram found his love and appreciation for writing in 2015 having started in the gaming and esports sphere for GG Network. He would then transition to focus more on the world of tech which has also began his journey into learning more about this world. That said though, he still has the mentality of "as long as it works" for his personal gadgets.
