Technology

Summary:

• The US government is suing Adobe for allegedly deceiving customers with hidden fees and making it difficult to cancel subscriptions.
• The Department of Justice claims Adobe enrolls customers in its most lucrative subscription plan without clearly disclosing important plan terms.
• Adobe allegedly hides the terms of its annual, paid monthly plan in fine print and behind optional textboxes and hyperlinks.
• The company fails to properly disclose the early termination fee, which can amount to hundreds of dollars, upon cancellation.
• The cancellation process is described as "onerous and complicated", involving multiple webpages and pop-ups.
• Customers who try to cancel over the phone or via live chats face similar obstacles, including dropped or disconnected calls and having to re-explain their reason for calling.
• The lawsuit targets Adobe executives Maninder Sawhney and David Wadhwani, alleging they directed or participated in the deceptive practices.
• The federal government began investigating Adobe's cancellation practices late last year.
• Adobe's subscription model has long been a source of frustration for creatives, who feel forced to stay subscribed to continue working.
• Recently, Adobe's new terms of service were met with backlash, with some users interpreting the changes as an opportunity for Adobe to train its AI on users' art.
• The company has also faced regulatory scrutiny in the past, including antitrust scrutiny from European regulators over its attempted $20 billion acquisition of product design platform Figma in 2022, which was ultimately abandoned.