New post Need visibility? Apply for a FREE post for your Startup.  Apply Here

News

Adobe sued by the U.S. over ‘hidden’ subscription fees

1 Mins read

The U.S. government has unleashed a legal firestorm against Adobe, the software giant behind creative apps like Photoshop and Acrobat. In a lawsuit filed Monday, federal authorities accused the company of deliberately deceiving consumers by masking expensive termination fees for its popular subscription services.

The Department of Justice complaint alleges Adobe pushed customers into high-priced “annual paid monthly” plans without properly disclosing key terms like the hefty early cancellation penalties that “can amount to hundreds of dollars.”

Instead, the government says Adobe buried these details in dense fine print and optional expandable menus – only revealing the fees when users already tried canceling. It labeled Adobe’s disclosures “designed to go unnoticed.”

The suit depicts an arduous hurdle course confronting those seeking to end subscriptions. Customers supposedly faced needlessly complicated website flows with endless pages and pop-ups. Phone cancellations likewise proved a struggle, with disconnected calls and obstinate sales reps forcing people to “re-explain their reason for calling.”

By effectively trapping disgruntled subscribers, the Federal Trade Commission accused Adobe of violating consumer protection laws through “deceptive” marketing of automatically recurring charges.

Adobe harmed consumers by enrolling them in its most lucrative subscription plan without disclosing important terms,” asserted the DOJ complaint. The DOJ is seeking penalties, refunds and a ban on the alleged practices.

Read also: Binance escapes Nigerian tax Charges, but crypto clash continues

Adobe has forcefully rejected the allegations, with its chief legal officer Dana Rao defending the “convenient, flexible and cost-effective” subscriptions as transparent, stating: “We have a simple cancellation process.”

The high-stakes clash spotlights escalating scrutiny over the shift to subscription-based business models across the tech sector, which critics argue prioritize corporate revenues over user choice.

As software transitions from one-off purchases to recurring bills, the Adobe case could have far-reaching implications for how virtual products and services are marketed to everyday consumers.

Don’t miss any tech news ever!

We don’t spam! Read our privacy policy for more info.

829 posts

About author
When I'm not reading about tech, I'm writing about it, or thinking about the next weird food combinations to try. I do all these with my headphones plugged in, and a sticky note on my computer with the words: "The galaxy needs saving, Star Lord."
Articles
Related posts
News

Nigerian Content Creators can now monetize their posts on Facebook and Instagram

1 Mins read
Facebook parent company, Meta, has finally unlocked the doors to Facebook monetization for content creators across Nigeria. As of June 27, 2024,…
News

Flutterwave trims workforce amid strategic shift

1 Mins read
Nigerian fintech giant, Flutterwave, has announced a strategic restructuring, resulting in a 3% reduction of its workforce. The company, known for its…
News

Flutterwave teams up with EFCC to combat cybercrime

1 Mins read
Nigerian fintech giant Flutterwave has joined forces with the Economic and Financial Crimes Commission (EFCC) to establish a Cybercrime Research Center in…
Newsletter Subscription

🤞 Don’t miss any update!

We don’t spam! Read more in our privacy policy

Join our Telegram channel here - t.me/TechpadiAfrica

Leave a Reply

×
Random

Google Enters AI Laptop Market Space With Its Chromebook Plus