Software giant Adobe has been sued by the U.S. Department of Justice for failing to clearly communicate the costs associated with difficult-to-cancel monthly subscriptions.

The US government has sued Adobe and two of its executives because the company failed to clearly communicate the terms of its subscription and the associated costs for early cancellation. In addition, Adobe makes it difficult to cancel its subscription, leaving customers stuck. The US Department of Justice then filed a complaint at the request of the Federal Trade Commission (FTC), which received several complaints from consumers.

Unclear conditions

The Federal Trade Commission (FTC) is taking action against Adobe for allegedly misleading customers with its “annually paid monthly subscription plan.” Not only the software company itself but also two of its executives have been charged: David Wadhwani, president of Adobe’s digital media business, and Maninder Sawhney, vice president of Adobe.

According to the complaint, Adobe steered consumers toward the “annual, monthly payment” subscription plan without clearly communicating that early cancellation could cost hundreds of dollars. The fine print states that early cancellation of the subscription will result in a refund of fifty percent of the remaining monthly payments in the first year.

“Americans are tired of companies hiding the ball when it comes to signing up and then putting up obstacles when they try to opt out. The FTC will continue to work to protect Americans from these illegal business practices,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection.

Difficult exit

In addition, the complaint also refers to the difficult cancellation process for consumers. It says that Adobe’s cancellation process creates difficulties for consumers. In the event of a cancellation, consumers would be forced to navigate through numerous pages to complete the cancellation.

The U.S. Department of Justice is now seeking an injunction requiring Adobe to stop these “deceptive practices” and wants Adobe to compensate consumers for “improperly collected fees.”