FTC Sues Adobe Over Subscription Practices, Alleging Deceptive Tactics

Adobe, a leader in digital design software, is facing legal action from the FTC over allegations that it has engaged in unfair business practices related to its subscription model. The agency claims that Adobe has made it deliberately difficult for customers to cancel their plans, often subjecting them to hidden fees and complex procedures.

According to the FTC, Adobe’s subscription model locks users into annual contracts without clearly disclosing cancellation penalties. Many consumers have reported being charged high termination fees when attempting to cancel their Creative Cloud plans, even when they were unaware of such terms at the time of purchase.

FTC Chair Lina Khan stated that the lawsuit is part of a broader effort to crack down on deceptive business practices in the digital marketplace. “Consumers deserve transparency when signing up for subscription services,” Khan said. “Adobe’s misleading policies have trapped customers in costly contracts with limited options for cancellation.”

Adobe has denied any wrongdoing, arguing that its subscription terms are clearly disclosed during the sign-up process. The company says it is committed to improving customer experience and will cooperate with the FTC’s investigation.

The case is expected to have broader implications for the tech industry, where subscription-based business models have become the norm. Many software companies rely on recurring revenue from subscriptions, but regulators are increasingly scrutinizing whether these models exploit consumers through hidden fees and unclear terms.

If the FTC succeeds in its lawsuit, Adobe could be forced to change its subscription policies, pay fines, and offer refunds to affected customers. The case also signals that other tech firms with similar business practices could face legal challenges in the future.

For now, consumers are advised to carefully review terms before committing to long-term software subscriptions and to be aware of potential cancellation penalties.