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Feeling Cheated by Adobe’s Cancellation Fees? Why the Government is Stepping In.
Adobe is currently facing significant legal challenges from both the U.S. government and its customers. The lawsuits allege the company uses misleading practices to lock users into subscriptions they do not fully understand.
The Heart of the Problem
The main issue revolves around Adobe’s “annual, billed monthly” subscription plan. Customers sign up believing they are on a flexible month-to-month plan, but they are actually committing to a full-year contract. If they try to cancel before the year is up, they are charged a substantial early termination fee, often amounting to 50% of the remaining contract balance.
These legal actions are not minor. The Federal Trade Commission (FTC) and the Department of Justice (DOJ) have filed a lawsuit against Adobe and two of its senior executives, Maninder Sawhney and David Wadhwani. The government argues that Adobe’s practices violate the Restore Online Shoppers’ Confidence Act (ROSCA) by not being transparent about these critical terms.
Hidden Fees and Difficult Cancellations
The lawsuits claim that Adobe intentionally makes its subscription terms confusing. The monthly cost is displayed prominently, while the details about the annual commitment and the early termination fee are buried in fine print or behind small icons that are easy to miss. This practice, often referred to as “dark patterns,” manipulates users into making decisions they otherwise might not.
The government’s complaint highlights several key issues:
Deceptive Enrollment
Adobe pre-selects the “annual, billed monthly” plan as the default, guiding users toward a long-term commitment without their full awareness.
Hidden Penalties
The early termination fee is not clearly disclosed during the sign-up process, surprising customers when they attempt to cancel.
Complicated Cancellation
The process to cancel a subscription is deliberately difficult. Customers report having to navigate numerous web pages, experience long wait times with customer service, and deal with dropped calls or chats. Some who believed they had successfully canceled found that Adobe continued to charge them.
Customers Fight Back
The government is not alone in its fight. A class-action lawsuit was filed in federal court in San Jose by two customers, Stephanie Wohlfiel and Vianca Marquez. Their story reflects the complaints of many others. They believed they had signed up for a flexible monthly plan and were shocked by the large penalty fee when they tried to cancel. The lawsuit even cites an internal Adobe communication where an executive allegedly referred to the hidden fee as being “a bit like heroin for Adobe,” suggesting the company was aware of the issue but reluctant to change it due to the financial impact.
Numerous customers have shared similar frustrating experiences online, detailing their struggles with unexpected fees and convoluted cancellation procedures. These user accounts strengthen the claims that Adobe’s practices are widespread and have been a source of consumer harm for years.
Adobe’s Position
In response to the lawsuits, Adobe has stated that it will contest the allegations in court. The company maintains that its subscription services are convenient and cost-effective, and that it is transparent about the terms and conditions. Adobe’s general counsel, Dana Rao, asserted that the company provides a simple cancellation process and prioritizes a positive customer experience.
Despite these defenses, the legal pressure is mounting. The lawsuits seek financial penalties and a court order to prevent Adobe from continuing these alleged practices. The outcome could force significant changes in how Adobe structures and sells its subscriptions, potentially costing the company millions and impacting the subscription-based model that has become central to its revenue since 2012. For consumers, these cases serve as a critical reminder to always read the fine print before committing to any service.