On Monday, the federal government revealed a civil enforcement lawsuit against Adobe, a software company, and two of its executives for purportedly violating the Restore Online Shoppers’ Confidence Act (ROSCA).
According to Ismail Ramsey, the U.S. Attorney for the Northern District of California, businesses that sell products and services online have an obligation to provide consumers with clear and prominent disclosure of material information.
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The Justice Department and Federal Trade Commission have filed a lawsuit against Adobe, along with David Wadhwani, the president of the company’s Digital Media Business, and Maninder Sawhney, the vice president of Digital Go to Market and Sales. The California-based software giant is being cited in the lawsuit.
According to a news release from the Justice Department, a lawsuit has been filed in the U.S. District Court for California’s Northern District, alleging that Adobe had imposed a hidden “Early Termination Fee” on millions of its subscribers. The lawsuit claims that customers were forced to go through a complicated and difficult cancellation process that discouraged them from cancelling subscriptions they no longer needed.
“The FTC’s Bureau of Consumer Protection Director Samuel Levine accused Adobe of tricking its customers into year-long subscriptions by imposing hidden early termination fees and creating multiple obstacles for cancellation,” he stated.
The defendants are facing a request for monetary civil penalties from the federal government, with the exact amount unspecified. Additionally, the government is seeking a permanent injunction to prevent the defendants from committing any future violations.
Levine stated that Americans are fed up with companies concealing information during subscription sign-up and creating obstacles when attempting to cancel. The FTC is committed to safeguarding Americans from such unlawful business practices.
The lawsuit is accusing Adobe of continuously violating ROSCA and benefiting from it for a long time. According to the lawsuit, Adobe utilized fine print and inconspicuous hyperlinks to conceal vital information about their subscription plans. This includes details about Early Termination Fees that customers may face when they cancel their subscriptions.
According to the complaint, Adobe has been accused of breaching the Restore Online Shoppers’ Confidence Act (ROSCA) by not providing an easy way for customers to cancel their recurring online subscriptions. The complaint also alleges that Adobe prioritized subscription revenue over customer satisfaction, as they allegedly made it difficult for subscribers to cancel their subscriptions. This was achieved through a complicated and inefficient cancellation process that included unnecessary steps, delays, unsolicited offers and warnings.
Like Publishers Clearing House and Amazon, Adobe is now being accused of violating the Restore Online Shoppers’ Confidence Act of 2010.
About a year ago, the Federal Trade Commission accused Amazon of using “dark patterns” to deceive customers into signing up for its Prime subscription service and making it challenging to cancel subscriptions. This allegation was similar to the one made against Adobe by the FTC.
