WASHINGTON D.C. – The U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) filed a civil enforcement action on June 17, 2024, against software giant Adobe Inc. and two of its executives. The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that Adobe engaged in deceptive practices by making it difficult for consumers to cancel subscriptions and by obscuring early termination fees.
The complaint specifically names Maninder Sawhney, Senior Vice President of Digital Media, and David Wadhwani, President of Digital Media Business, alongside the company. Authorities claim Adobe violated the Online Shopping Protection Act (OSPA) and the Restore Online Shoppers’ Confidence Act (ROSCA). These alleged violations include deceptively enrolling consumers in its most lucrative subscription plans without clearly disclosing important terms and trapping them in year-long commitments.
John Coogan, a prominent online commentator, highlighted the news on social media, stating, > "The US government is suing Adobe for making it too hard to cancel subscriptions. This is great news for consumers! It's a common dark pattern that companies use to lock people in." His tweet reflects a broader consumer concern regarding subscription management.
Adobe has issued a statement in response to the lawsuit, asserting its commitment to customer experience. The company stated, "We are transparent with the terms and conditions of our subscription agreements and have a simple cancellation process. We will refute the FTC’s claims in court."
This legal action signals an intensified focus by regulatory bodies on "dark patterns" and deceptive online design practices within subscription models. Legal experts and industry observers suggest the lawsuit serves as a significant warning to businesses relying on recurring revenue, indicating a more aggressive stance by regulators to protect consumers in the digital economy. The outcome of this case could set a precedent for how companies design and manage their online customer journeys and subscription services.