Subj : The US government is suing Adobe over hidden contract changes and
To   : All
From : TechnologyDaily
Date : Tue Jun 18 2024 18:45:05

The US government is suing Adobe over hidden contract changes and fees 
trapping customers

Date:
Tue, 18 Jun 2024 17:34:26 +0000

Description:
Pushed by the FTC, the DOJ has filed a legal complaint against Adobe 
surrounding its software subscriptions.

FULL STORY
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The US Department of Justice has filed a federal court complaint against 
software giant Adobe prompted by a referral from the Federal Trade 
Commission, the countrys body responsible for antitrust cases. 

The complaint targets Adobe and two of its executives, SVP for Digital Media, 
Digital GTM and Sales Mininder Sawhney and Chief Business Officer for Digital 
Media David Wadhwani, accusing them of concealing fees and creating hurdles 
for consumers attempting to cancel their subscriptions. 

The DOJs complaint criticizes Adobe for directing consumers towards its 
annual plans, which are paid monthly, by pre-selecting the option during the 
account creation process. The US wants to sue Adobe 

According to the complaint, crucial details such as the early termination fee 
for cancelling within the first year are hidden during the signup process. 
Other information, like the billing and renewal terms and the length of the 
subscription, are also said to be hidden. Instead, theyre said to be obscured 
behind icons or in small print on the website. 

Consumers who cancel before their annual contract finished face a fee 
amounting to 50% of the remaining payments, potentially costing hundreds of 
dollars. 

The complaint claims that Adobes tactics are not accidental, stating that the 
company knowingly complicates the cancellation process by creating an 
obstacle course of screens and clicks. 

Furthermore, the DOJ asserts that customers face further barriers, like 
dropped calls, interrupted chat and multiple transfers, making it even harder 
to cancel. 

An FTC announcement summarizes: Adobe, Wadhwani, and Sawhney violated ROSCA 
and the FTC Act by failing to get the consumers express informed consent 
before charging their credit card, debit card, or other account. 

In a statement to customers affected by dodgy subscription terms across the 
board, the FTC said: If your company uses a subscription model, the filing of 
the lawsuit should signal to you that the FTC is continuing the fight against 
buried terms and conditions, hidden fees, and convoluted cancellation 
procedures. More from TechRadar Pro Check out the best productivity software 
on offer today Weve also rounded up a list of the best online collaboration 
tools Adobe users are furious about the company's terms of service change to 
help it train AI



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Link to news story:
https://www.techradar.com/pro/the-us-government-is-suing-adobe-over-hidden-con
tract-changes-and-fees-trapping-customers


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