US Justice Department Sues Adobe for Deceiving Consumers by Hiding Early Termination Fee
The US Justice Department has sued Adobe for deceiving users by hiding the early termination fee and making it difficult to cancel subscriptions. The lawsuit claims that the company pushed its users toward the “annual paid monthly” without notifying them that canceling the plan within the first year would cost them huge amounts of money. Learn more.
- The Department of Justice has sued Adobe for deceiving users by hiding the early termination fee and making it difficult to cancel subscriptions.
- According to a recent FTC report, these deceptive practices, also called “dark patterns,” are on the rise.
The US Department of Justice (DoJ) has sued Adobe, claiming that the company is deceiving users by hiding the early termination fee and making it challenging to cancel subscriptions. The lawsuit was filed on Monday. In its suit, the DoJ wrote, “Adobe has harmed consumers by enrolling them in its default, most lucrative subscription plan without clearly disclosing important plan terms.”
The department further claimed that the company pushed its users toward the “annual paid monthly” without notifying them that canceling the plan within the first year would cost them huge amounts of money. The company informs them only when customers try to cancel their subscriptions. Thus, the company uses the early termination fee as a “powerful retention tool” by trapping users into subscriptions they no longer need.
The complaint also claims that the company has violated federal laws designed to protect consumers. The DoJ is seeking “injunctive relief, civil penalties, equitable monetary relief, as well as other relief.”
Adobe, however, plans to refute these claims in court. 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.”
The company shifted to a subscription model in 2012, requiring consumers to pay a regular fee to access its software. Before that, users could pay a one-time fee and access Adobe’s software.
See more: Austrian Advocacy Group Hits Google With Privacy Complaint Over Chrome Browser
Dark Patterns on the Rise?
Adobe is not the first or the only company caught using “dark patterns” or deceptive practices that violate FTC standards to trick consumers into payments, subscriptions, or giving up their privacy. Federal Trade Commission’s (FTC) recent report showed an increase in dark patterns to trick consumers. These patterns are particularly prevalent in cookie consent banners, ecommerce, subscription sales, and children’s apps.
A few companies that have been caught using these practices include Amazon and Publishers Clearing House (PCH). In July 2023, the FTC sued Amazon, alleging that the company used dark patterns to trick consumers into enrolling in its Prime membership program. Before that, the FTC filed a lawsuit against PCH, claiming that the company misled consumers about how to enter its sweepstakes drawings, making them believe that a purchase was necessary to win or increase the chances of winning. As a result, the company agreed to pay $18.5 million to consumers who spent money and wasted their time. Epic Games was another company that was caught using dark patterns.
Consumers are advised to contact a consumer protection attorney if they believe they have been victimized by a dark pattern.
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