Adobe has been sued over how it presents its subscription terms. A proposed class action filed in federal court claims Adobe makes it difficult for users to understand what kind of subscription they’re signing up for, particularly its “Annual, billed monthly” plan.
According to the lawsuit, the ABM plan appears to be a simple monthly subscription but is actually a year-long contract. The complaint alleges that Adobe hides key terms, like the fact that canceling early can trigger a fee equal to half of the remaining annual cost, in small print or behind links that aren’t obvious during checkout.
The filing claims many users don’t find out about the early termination fee until they try to cancel. It also accuses Adobe of designing a cancellation process that is hard to complete and of using persuasive tactics, like offering discounts or add-ons, to keep users from leaving. For some, charges allegedly continued even after they believed they had cancelled.
An internal Adobe email quoted in the complaint reportedly described the early termination fee as “a bit like heroin for Adobe,” suggesting the company viewed it as critical to revenue and was reluctant to make it more transparent.
The complaint follows a similar enforcement action from the Federal Trade Commission, which alleges Adobe’s practices violate federal consumer protection laws. Adobe’s ABM plan is described in both filings as a major source of the company’s subscription income.
The plaintiffs are seeking monetary damages and a court order requiring Adobe to change how it presents subscription terms and handles cancellations. The case is pending in the U.S. District Court for the Northern District of California.
To find out more, visit classaction.org.
