Why Is the U.S. Government Suing Adobe?
Summary from the AllSides News Team
The Federal Trade Commission (FTC) is suing Adobe Inc., accusing the software company of illegally making subscription cancelations difficult for customers and hiding termination fee information.
The Details: The lawsuit alleges Adobe imposed a hidden early termination fee on millions of its subscribers, subjected them to a complex cancelation process, and used fine print and hyperlinks to conceal important subscription agreement details. These actions, the FTC says, constitute violations of the 2010 Restore Online Shoppers’ Confidence Act (ROSCA), which requires online merchants to disclose material terms and obtain informed consent before imposing charges.
Key Quotes: An FTC statement on the lawsuit referred to cases where customers were purportedly impeded by Adobe’s subscription process, stating, “Some consumers who thought they had successfully cancelled their subscription reported that the company continued to charge them until discovering the charges on their credit card statements.” Meanwhile, a statement from Adobe’s general counsel and chief trust officer denied the allegations, saying, “We are transparent with the terms and conditions of our subscription agreements and have a simple cancelation process.”
For Context: Adobe, known for software products like its Photoshop and Acrobat, shifted from “perpetual licensing” of software — where buyers had indefinite access to products — to monthly and annual subscription models in 2012. In recent years, Adobe’s revenue from subscription-based software has reportedly nearly doubled, hitting $14.2 billion in 2023.
How the Media Covered It: Coverage did not appear to contain significant partisan differences. This summary was developed with the help of AllSides' AI technology.
Featured Coverage of this Story
From the Center
US sues Photoshop maker Adobe for hiding fees, making it difficult to cancelThe U.S. government sued Adobe (ADBE.O), opens new tab on Monday, accusing the Photoshop and Acrobat maker of harming consumers by concealing hefty termination fees in its most popular subscription plan, and making it difficult to cancel subscriptions.
In a complaint filed in the San Jose, California, federal court, the Federal Trade Commission said Adobe buries the fees, which sometimes reach hundreds of dollars, and other important terms in its "annual paid monthly" subscription plan in the fine print, or behind textboxes and hyperlinks.
According to the complaint, Adobe calculates early termination...
From the Right
FTC sues Adobe for allegedly hiding fees, making it tough to cancel subscriptionsThe Federal Trade Commission sued Adobe and two of its executives Thursday, claiming the Photoshop maker hides early termination fees on its most popular subscription and makes it difficult for customers to cancel.
The federal regulator said in its complaint that Adobe does not adequately disclose the fees, which are calculated as 50% of the remaining payments when customers cancel in their first year. According to the FTC, those fees can reach hundreds of dollars.
The FTC also said Adobe forces subscribers who want to cancel online to navigate unnecessarily through numerous pages, while...
From the Left
Adobe steered consumers to pricey services and made it hard to cancel, feds sayThe U.S. government is suing Adobe, accusing the software maker of steering customers toward a pricey subscription plan while concealing how much it costs to cancel the service.
The Federal Trade Commission (FTC) said Monday that Adobe deceives customers by "hiding" the early termination fee for the company's services, which includes popular tools such as Acrobat, Photoshop and Illustrator.
Specifically, Adobe encouraged consumers to enroll in its "annual, paid month" plan without disclosing that canceling could cost hundreds of dollars, according to the agency. Users who do try to cancel are met...
AllSides Picks
July 1st, 2024
July 1st, 2024