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US Justice Department sues Adobe for concealing early termination fee from consumers

Wed 19 Jun 2024    
The Brew News Team | < 1 min read

The U.S. Department of Justice has taken legal action against Adobe, filing a lawsuit accusing the software giant of deceptive practices related to subscription plans. According to the DOJ’s complaint lodged on Monday, Adobe allegedly misled consumers by not adequately disclosing an early-termination fee and making it challenging for subscribers to cancel their plans.

The lawsuit contends that Adobe enrolled customers into its “annual paid monthly” subscription plan by default, which is the most profitable for the company. However, the DOJ asserts that Adobe failed to clearly communicate to consumers that canceling this plan within the first year could result in substantial fees amounting to hundreds of dollars.

The Department of Justice claims that Adobe’s actions have harmed consumers by leading them into subscriptions without providing essential details about cancellation costs. This alleged lack of transparency reportedly prevented customers from making informed decisions about their subscriptions.

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The lawsuit marks a significant legal challenge for Adobe, a major player in the software industry known for its popular creative software products like Photoshop and Illustrator. The DOJ’s legal action underscores the government’s commitment to protecting consumer rights and ensuring transparency in business practices.

Adobe has not yet publicly responded to the lawsuit. The case is expected to unfold in the coming months, with potential implications for how subscription-based companies disclose fees and terms to their customers in the future.

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