The Department of Justice (DOJ) and the Federal Trade Commission (FTC) have filed a lawsuit against Adobe, alleging that the company makes it too difficult to cancel its online subscription services.
The lawsuit, filed Monday against Adobe and two of its executives, Assert Adobe “imposed hidden early termination fees on millions of online subscribers and forced them into ‘complex and difficult cancellation processes designed to discourage subscribers from cancelling subscriptions they no longer wanted,'” the lawsuit said. variety.
a Edited According to a copy of the complaint, Adobe “systematically violated” the Restoring Customer Confidence in Online Shopping Act (ROSCA) by using small print and “inconspicuous hyperlinks” to hide important information about the contracts, including “information about significant early termination fees that may be charged if a customer cancels their subscription.”
Adobe allegedly “profited from these hidden fees, misled consumers about the true cost of their subscriptions, blindsided them with the fees when they tried to cancel, and used the fees as a powerful customer retention tool.” The company also allegedly violated ROSCA by failing to offer subscribers an easy way to cancel their recurring payments, subjecting them to “complex and inefficient cancellation processes.”
In a statement on Monday, Adobe said it would defend the lawsuit and its business practices.
“Our subscription services are convenient, flexible and cost-effective, so users can choose the plan that best suits their needs, schedule and budget. Our top priority is always to ensure our customers have a positive experience,” said Dana Rao, general counsel and chief trust officer at Adobe. “We make our subscription terms transparent and our cancellation process simple, and we will defend against the FTC’s claims in court.”
Par varietyThe lawsuit seeks “unspecified compensation to consumers allegedly harmed by the conduct, civil penalties against the defendants, and a permanent injunction barring future violations.”
“As the government’s lawsuit points out, Adobe’s subscription revenue has nearly doubled in recent years. In 2019, Adobe earned $7.71 billion in subscription-based revenue,” the media outlet noted. “By 2023, subscription-based revenue will account for $14.22 billion of the company’s total annual revenue of $19.41 billion.”
Principal Deputy Attorney General Brian Boynton, head of the Justice Department’s Civil Division, said the government is prepared to enforce ROSC.
“The Department of Justice is committed to stopping companies and their executives from preying on consumers who sign up for online subscriptions by hiding important terms or making it difficult to cancel,” Boynton said. “We will continue to enforce ROSCA against those who engage in such deceptive practices. No company, whether a small business or a Fortune 500 company like Adobe, is immune from the law.”
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