Adobe prioritized profits while spending years ignoring numerous complaints from users struggling to cancel costly subscriptions without incurring hefty hidden fees, the US Federal Trade Commission (FTC) alleged in a lawsuit Monday.
According to the FTC, Adobe knew that canceling subscriptions was hard but determined that it would hurt revenue to make canceling any easier, so Adobe never changed the "convoluted" process. Even when the FTC launched a probe in 2022 specifically indicating that Adobe's practices may be illegal, Adobe did nothing to address the alleged harm to consumers, the FTC complaint noted. Adobe also "provides no refunds or only partial refunds to some subscribers who incur charges after an attempted, unsuccessful cancellation."
Adobe "repeatedly decided against rectifying some of Adobe’s unlawful practices because of the revenue implications," the FTC alleged, asking a jury to permanently block Adobe from continuing the seemingly deceptive practices.
Dana Rao, Adobe's general counsel and chief trust officer, provided a statement confirming to Ars that Adobe plans to defend its business practices against the FTC's claims.
"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. "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.”
Cancellation fee allegedly used as retention tool
The government's heavily redacted complaint laid out Adobe's alleged scheme, which starts with "manipulative enrollment practices."
To lock subscribers into recurring monthly payments, Adobe would typically pre-select by default its most popular "annual paid monthly" plan, the FTC alleged. That subscription option locked users into an annual plan despite paying month to month. If they canceled after a two-week period, they'd owe Adobe an early termination fee (ETF) that costs 50 percent of their remaining annual subscription. The "material terms" of this fee are hidden during enrollment, the FTC claimed, only appearing in "disclosures that are designed to go unnoticed and that most consumers never see."