The US government has filed a lawsuit against Adobe, accusing the software giant of deceptive practices related to its subscription services. 

The Federal Trade Commission (FTC) lodged the complaint in the federal court of San Jose, California, alleging that Adobe has been concealing substantial termination fees in its “annual paid monthly” subscription plans and obstructing the cancellation process for consumers.

The FTC claims that Adobe's methods cause significant harm to consumers by hiding these fees, which can reach hundreds of dollars, in fine print or behind difficult-to-access textboxes and hyperlinks. 

Specifically, the early termination fees are calculated as 50 per cent of the remaining payments if consumers cancel within the first year of their subscription.

Further allegations include Adobe's practice of making it challenging for subscribers to cancel online, requiring navigation through numerous web pages. 

For those attempting to cancel by phone, the FTC states that customers often face disconnections, repetitive interactions with multiple representatives, and deliberate resistance and delays from customer service agents.

Two key Adobe executives have been named as defendants in the case: David Wadhwani, President of the Digital Media Business, and Maninder Sawhney, Senior Vice President of Digital Sales. 

“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.”

In response, Dana Rao, Adobe's General Counsel and Chief Trust Officer, has declared the company's intent to contest the FTC's claims in court. 

“Subscription services are convenient, flexible, and cost-effective to allow users to choose the plan that best fits their needs, timeline, and budget,” Rao said. 

“We are transparent with the terms and conditions of our subscription agreements and have a simple cancellation process.”

According to the complaint, Adobe's subscription revenues accounted for $4.92 billion, or 95 per cent, of its $5.18 billion total revenue in the quarter ending March 1. 

The FTC asserts that Adobe's practices violate the Restore Online Shoppers’ Confidence Act, a 2010 law prohibiting merchants from imposing charges for automatic subscription renewals unless terms are clearly disclosed and customer consent is obtained.

The lawsuit seeks civil penalties, an injunction to prevent further violations, and additional remedies. 

The FTC’s official statement is accessible here.