DOJ and FTC Accuse Adobe of Engaging in Acrobatics to Hide Subscription Terms

  • The U.S. DOJ, upon notification and referral from the FTC, filed a lawsuit against Adobe, Inc. and two of its executives (collectively, “Adobe”), alleging that the software company violated the FTC Act and the Restore Online Shoppers’ Confidence Act by hiding subscription early termination fees and making it difficult for customers to cancel subscriptions.
  • According to the complaint, Adobe allegedly failed to clearly disclose material terms related to early termination fees and cancellation for its “Annual, Paid Monthly” subscription plan, failed to obtain customers’ express informed consent before charging them for subscriptions, and failed to provide a simple subscription cancellation method, among other allegations. The complaint names two Adobe executives individually for allegedly directing or controlling the company’s acts and practices.
  • The complaint seeks injunctive relief and civil penalties, among other relief.