SAN JOSE (dpa-AFX) - The US Department of Justice and the Federal Trade
Commission has filed a lawsuit against Adobe Inc. (ADBE) for charging hidden
termination fee from subscribers who want to cancel their Adobe plans.

According to the FTC, it is taking action against the software maker 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.

Wadhwani is the president of Adobe's digital media business, and Sawhney is an
Adobe vice president.

In a complaint filed in the San Jose, California, federal court, FTC said Adobe
failed to adequately disclose hefty early termination fees, sometimes reaching
hundreds of dollars, when customers sign up for 'annual, paid monthly'
subscription plans.

'Adobe trapped customers into year-long subscriptions through hidden early
termination fees and numerous cancellation hurdles,' said Samuel Levine,
Director of the FTC's Bureau of Consumer Protection. 'Americans are tired of
companies hiding the ball during subscription signup and then putting up
roadblocks when they try to cancel. The FTC will continue working to protect
Americans from these illegal business practices.'

After 2012, Adobe shifted principally to a subscription model, requiring
consumers to pay for access to the company's popular software on a recurring
basis. Subscriptions account for most of the company's revenue.



Copyright(c) 2024 RTTNews.com. All Rights Reserved

Copyright RTT News/dpa-AFX