{"id":43703,"date":"2024-06-17T16:02:28","date_gmt":"2024-06-17T20:02:28","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=43703"},"modified":"2026-03-26T11:18:18","modified_gmt":"2026-03-26T15:18:18","slug":"u-s-sues-adobe-over-subscriptions","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2024\/06\/17\/u-s-sues-adobe-over-subscriptions\/","title":{"rendered":"U.S. Sues Adobe Over Subscriptions"},"content":{"rendered":"<p><a href=\"https:\/\/www.ftc.gov\/news-events\/news\/press-releases\/2024\/06\/ftc-takes-action-against-adobe-executives-hiding-fees-preventing-consumers-easily-cancelling\">FTC<\/a> (<a href=\"https:\/\/s3.documentcloud.org\/documents\/24764768\/adobe_complaint.pdf\">PDF<\/a>, via <a href=\"https:\/\/news.ycombinator.com\/item?id=40707558\">Hacker News<\/a>):<\/p>\n<blockquote cite=\"https:\/\/www.ftc.gov\/news-events\/news\/press-releases\/2024\/06\/ftc-takes-action-against-adobe-executives-hiding-fees-preventing-consumers-easily-cancelling\">\n<p>The Federal Trade Commission is taking action against software maker Adobe and two of its executives, Maninder Sawhney and David Wadhwani, for deceiving consumers by hiding the early termination fee for its most popular subscription plan and making it difficult for consumers to cancel their subscriptions.<\/p>\n<p>[&#8230;]<\/p>\n<p>According to the complaint, when consumers purchase a subscription through the company&rsquo;s website, Adobe pushes consumers to its &ldquo;annual paid monthly&rdquo; subscription plan, pre-selecting it as a default. Adobe prominently shows the plan&rsquo;s &ldquo;monthly&rdquo; cost during enrollment, but it buries the early termination fee (ETF) and its amount, which is 50 percent of the remaining monthly payments when a consumer cancels in their first year. Adobe&rsquo;s ETF disclosures are buried on the company&rsquo;s website in small print or require consumers to hover over small icons to find the disclosures.<\/p>\n<p>[&#8230;]<\/p>\n<p>In addition to failing to disclose the ETF to consumers when they subscribe, the complaint also alleges that Adobe uses the ETF to ambush consumers to deter them from cancelling their subscriptions. The complaint also alleges that Adobe&rsquo;s cancellation processes are designed to make cancellation difficult for consumers. When consumers have attempted to cancel their subscription on the company&rsquo;s website, they have been forced to navigate numerous pages in order to cancel.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/www.theverge.com\/2024\/6\/17\/24180196\/adobe-us-ftc-doj-sues-subscriptions-cancel\">Emma Roth<\/a>:<\/p>\n<blockquote cite=\"https:\/\/www.theverge.com\/2024\/6\/17\/24180196\/adobe-us-ftc-doj-sues-subscriptions-cancel\">\n<p>Customers encounter similar obstacles when attempting to cancel their subscriptions over the phone or via live chats, the DOJ alleges. The complaint claims &ldquo;subscribers have had their calls or chats either dropped or disconnected and have had to re-explain their reason for calling when they re-connect.&rdquo;<\/p>\n<p>[&#8230;]<\/p>\n<p>In 2012, Adobe went from selling its creative software for lifetime use to charging users for a monthly or yearly subscription to its suite of products, including Photoshop, Illustrator, InDesign, and others. The company&rsquo;s subscription model has long frustrated creatives, who are often forced to stay subscribed to Adobe in order to keep doing their jobs.<\/p>\n<\/blockquote>\n\n<p><a href=\"https:\/\/petapixel.com\/2024\/06\/09\/adobe-has-made-it-too-easy-to-hate-them\/\">Jeremy Gray<\/a>:<\/p>\n<blockquote cite=\"https:\/\/petapixel.com\/2024\/06\/09\/adobe-has-made-it-too-easy-to-hate-them\/\">\n<p>Despite being full of passionate, talented people who genuinely care about artists, the company has earned its negative reputation. To no fault of the people who make the Adobe software that so many use daily, the company&rsquo;s beleaguered customers do not trust Adobe.<\/p>\n<\/blockquote>\n\n<p>Previously:<\/p>\n<ul>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2024\/06\/06\/updated-adobe-terms-of-use\/\">Updated Adobe Terms of Use<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2023\/12\/19\/adobe-abandons-figma-acquisition\/\">Adobe Abandons Figma Acquisition<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2023\/07\/05\/adobe-at-40\/\">Adobe at 40<\/a><\/li>\n<li><a href=\"https:\/\/mjtsai.com\/blog\/2023\/06\/23\/amazon-prime-dark-patterns-lawsuit\/\">Amazon Prime Dark Patterns Lawsuit<\/a><\/li>\n<\/ul>\n\n<p id=\"u-s-sues-adobe-over-subscriptions-update-2024-06-18\">Update (2024-06-18): <a href=\"https:\/\/pxlnv.com\/linklog\/ftc-v-adobe\/\">Nick Heer<\/a>:<\/p>\n<blockquote cite=\"https:\/\/pxlnv.com\/linklog\/ftc-v-adobe\/\">\n<p>The contours of the case itself bear similarities to the Amazon Prime one, too. In both cases, customers are easily coerced into subscriptions which are difficult to cancel. Executives were aware of customer complaints, according to the FTC, yet they allegedly allowed or encouraged these practices. But there are key differences between these cases as well.<\/p>\n<\/blockquote>\n<p>See also: <a href=\"https:\/\/talk.macpowerusers.com\/t\/us-sues-adobe-for-deceiving-subscriptions-that-are-too-hard-to-cancel\/37568\">Mac Power Users Talk<\/a>,  <a href=\"https:\/\/www.macrumors.com\/2024\/06\/17\/us-government-sues-adobe-hidden-fees\/\">MacRumors<\/a>.<\/p>\n\n<p id=\"u-s-sues-adobe-over-subscriptions-update-2024-07-26\">Update (2024-07-26): <a href=\"https:\/\/9to5mac.com\/2024\/07\/25\/adobe-hidden-pricing-heroin\/#more-959990\">Ben Lovejoy<\/a> (<a href=\"https:\/\/news.ycombinator.com\/item?id=41087208\">Hacker News<\/a>):<\/p>\n<blockquote cite=\"https:\/\/9to5mac.com\/2024\/07\/25\/adobe-hidden-pricing-heroin\/#more-959990\"><p>An Adobe exec is quoted as describing its hidden pricing strategy as being &ldquo;a bit like heroin.&rdquo; The remark was revealed when the government released <a href=\"https:\/\/www.documentcloud.org\/documents\/24995347-govuscourtscand431152400?responsive=1&amp;title=1\">its unredacted complaint<\/a>, which accuses the company of <a href=\"https:\/\/9to5mac.com\/2024\/06\/17\/us-doj-sues-adobe-for-trapping-users-in-subscriptions\/\">deliberately making it hard to cancel<\/a> a Creative Cloud subscription.<\/p>\n<p>The exec acknowledged customer anger at the way the company made its contractual terms hard to understand, but said that improving this would result in &ldquo;taking a big business hit&rdquo; &#8230;<\/p>\n<p>[&#8230;]<\/p>\n<p>Adobe&rsquo;s chief in-house lawyer Dana Rao claimed that the remark was taken out of context, and that the employee who made it was not a C-level employee who could make decisions on such matters. The company also claimed that revealing the penalty fee would make the user interface &ldquo;very cluttered.&rdquo;<\/p><\/blockquote>\n\n<p id=\"u-s-sues-adobe-over-subscriptions-update-2025-06-27\">Update (<a href=\"#u-s-sues-adobe-over-subscriptions-update-2025-06-27\">2025-06-27<\/a>): <a href=\"https:\/\/mastodon.social\/@marcedwards\/114754668149291085\">Marc Edwards<\/a>:<\/p>\n<blockquote cite=\"https:\/\/mastodon.social\/@marcedwards\/114754668149291085\">\n<p>Adobe&rsquo;s cancellation process is as bad as ever in 2025. I&rsquo;m not sure I even made it to the end. Yes, I&rsquo;m still subscribed.<\/p>\n<\/blockquote>\n\n<p id=\"u-s-sues-adobe-over-subscriptions-update-2026-03-17\">Update (<a href=\"#u-s-sues-adobe-over-subscriptions-update-2026-03-17\">2026-03-17<\/a>): <a href=\"https:\/\/petapixel.com\/2026\/03\/13\/adobe-to-pay-150-million-settlement-in-subscription-cancellation-lawsuit\/\">Jeremy Gray<\/a> (<a href=\"https:\/\/9to5mac.com\/2026\/03\/13\/adobe-to-pay-75-million-settlement-for-making-it-too-hard-to-cancel-subscriptions\/\">9to5Mac<\/a>):<\/p>\n<blockquote cite=\"https:\/\/petapixel.com\/2026\/03\/13\/adobe-to-pay-150-million-settlement-in-subscription-cancellation-lawsuit\/\">\n<p>Adobe and the DOJ settled the lawsuit today, and Adobe will pay the DOJ $75 million and provide affected customers with $75 million worth of free services. Adobe maintains it did nothing wrong.<\/p>\n<\/blockquote>\n\n<p id=\"u-s-sues-adobe-over-subscriptions-update-2026-03-19\">Update (<a href=\"#u-s-sues-adobe-over-subscriptions-update-2026-03-19\">2026-03-19<\/a>): <a href=\"https:\/\/pxlnv.com\/linklog\/adobe-ftc-settlement\/\">Nick Heer<\/a>:<\/p>\n<blockquote cite=\"https:\/\/pxlnv.com\/linklog\/adobe-ftc-settlement\/\">\n<p>For comparison, here is the equivalent disclaimer <a href=\"https:\/\/www.adobe.com\/ca\/creativecloud\/plans.html\">on its Canadian site<\/a>:<\/p>\n<blockquote>\n<p>Fee applies if you cancel after 14 days.<\/p>\n<\/blockquote>\n<p>Here, too, there is a little informational icon. When you hover over it, Adobe says the same thing about cancellation, and adds that cancelling will incur an early termination fee. It is the <a href=\"https:\/\/www.adobe.com\/uk\/creativecloud\/plans.html\">same on the U.K. site<\/a>.<\/p>\n<p>What is the answer here? Does each country need to sue Adobe for its billing flow to disclose a reasonable amount of information?<\/p>\n<\/blockquote>\n\n<p id=\"u-s-sues-adobe-over-subscriptions-update-2026-03-26\">Update (<a href=\"#u-s-sues-adobe-over-subscriptions-update-2026-03-26\">2026-03-26<\/a>): <a href=\"https:\/\/www.wheresyoured.at\/hatersguide-adobe\/\">Edward Zitron<\/a>:<\/p>\n<blockquote cite=\"https:\/\/www.wheresyoured.at\/hatersguide-adobe\/\">\n<p>One might read this and think &ldquo;wow, $34.99 a month, what a deal!&rdquo; and immediately sign up without clicking on &ldquo;view terms,&rdquo; which reveals that after three months the subscription cost becomes $69.99 a month, and that this &ldquo;monthly&rdquo; subscription is a year-long contract.<\/p>\n<p>Adobe deliberately hid (and I&rsquo;d argue still hides!) its early termination fees behind &ldquo;inconspicuous hyperlinks and fine print.&rdquo; Want to cancel? Adobe charges you 50% of the remaining balance on your contract &mdash; so, in this case, over $300, and it justifies this by saying (and I quote) &ldquo;&#8230;your purchase of a yearly subscription comes with a significant discount. Therefore, a cancellation fee applies if you cancel before the year ends.&rdquo; <\/p>\n<\/blockquote>","protected":false},"excerpt":{"rendered":"<p>FTC (PDF, via Hacker News): The Federal Trade Commission is taking action against software maker Adobe and two of its executives, Maninder Sawhney and David Wadhwani, for deceiving consumers by hiding the early termination fee for its most popular subscription plan and making it difficult for consumers to cancel their subscriptions. [&#8230;] According to the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2024-06-17T20:02:30Z","apple_news_api_id":"fad80ab3-620a-4315-be3c-9ca4c456d359","apple_news_api_modified_at":"2026-03-26T15:18:23Z","apple_news_api_revision":"AAAAAAAAAAAAAAAAAAAACQ==","apple_news_api_share_url":"https:\/\/apple.news\/A-tgKs2IKQxW-PJykxFbTWQ","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":"\"\"","apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[2],"tags":[447,1325,1421,1836,1156,41,209,30],"class_list":["post-43703","post","type-post","status-publish","format-standard","hentry","category-technology","tag-adobe","tag-adobe-creative-cloud","tag-app-subscriptions","tag-dark-patterns","tag-federal-trade-commission-ftc","tag-lawsuit","tag-legal","tag-mac"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/43703","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/comments?post=43703"}],"version-history":[{"count":11,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/43703\/revisions"}],"predecessor-version":[{"id":51378,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/posts\/43703\/revisions\/51378"}],"wp:attachment":[{"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/media?parent=43703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/categories?post=43703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mjtsai.com\/blog\/wp-json\/wp\/v2\/tags?post=43703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}