FTC Sues Adobe for Deceptive Underwriting Practices

The U.S. government has taken legal action against Adobe, alleging that the software giant has been steering customers towards its priciest subscription plans while obscuring the true cost of cancellation.

The Federal Trade Commission (FTC) disclosed on Monday that Adobe has been misleading customers by concealing the early termination fees associated with its services, including popular tools like Acrobat, Photoshop, and Illustrator. The FTC asserts that Adobe enticed consumers into signing up for "annual paid month" plans without explicitly stating that canceling could result in substantial fees, amounting to hundreds of dollars. Moreover, users who attempted to cancel their subscriptions were allegedly met with unfair and obstructive roadblocks.

Key Figures Named in the Lawsuit

The lawsuit, filed in federal court by the Department of Justice based on the FTC's discoveries, identifies Adobe's Vice President Maninder Sawhney and President of Adobe's digital media business, David Wadhwani, as defendants. The FTC claims that Adobe's actions violate the Restore Online Shoppers' Confidence Act.

Samuel Levine, the director of the FTC's consumer protection bureau, condemned Adobe's practices, stating, "Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles."