US sues Adobe for hiding termination fees and making it difficult to cancel subscriptions
How does Adobe allegedly make the cancellation process difficult for consumers, according to the DOJ complaint?
According to the DOJ complaint, Adobe allegedly makes the cancellation process difficult for consumers in several ways. First, the company hides the material terms of its "annual paid monthly" (APM) plan in fine print and behind option textboxes and hyperlinks during enrollment. This makes it hard for consumers to find and understand important plan terms, including the early-termination fee.
Second, Adobe is accused of pushing consumers toward the APM subscription plan without adequately disclosing that canceling the plan in the first year would cost hundreds of dollars. The early-termination fee is only disclosed when subscribers attempt to cancel, turning it into a "powerful retention tool" that traps consumers in subscriptions they no longer want.
Lastly, the complaint says that Adobe employs an "onerous and complicated" cancellation process, deterring cancellations and making it difficult for consumers to cancel their subscriptions.
Adobe, on the other hand, maintains that it is transparent with the terms and conditions of its subscription agreements and has a simple cancellation process. The company says it plans to refute the DOJ's claims in court.
What defenses has Adobe presented in response to the lawsuit filed by the DOJ?
Adobe has not provided a detailed defense in response to the lawsuit filed by the DOJ. However, in a statement, Adobe's General Counsel and Chief Trust Officer Dana Rao said, "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." This suggests that Adobe may argue that they have been transparent with their subscription terms and that they have a straightforward cancellation process in place. The company plans to refute the claims in court.
How does the DOJ claim Adobe deceives consumers regarding the early-termination fees of its subscription plans?
The DOJ claims that Adobe deceives consumers regarding the early-termination fees of its subscription plans by hiding the fees and making it difficult for people to cancel their subscriptions1. According to the complaint, Adobe enrolls consumers in its default, most lucrative subscription plan without clearly disclosing important plan terms. The government says Adobe pushes consumers toward the "annual paid monthly" subscription without informing them that canceling the plan in the first year would cost hundreds of dollars. Adobe only discloses the early-termination fees when subscribers attempt to cancel, and turns the early-termination fee into a "powerful retention tool" by trapping consumers in subscriptions that they no longer want1.