On Monday, the United States federal government filed a civil enforcement lawsuit against Adobe, a software company, and two of its executives for violating the Restore Online Shoppers’ Confidence Act (ROSCA).
According to Ismail Ramsey, the U.S. Attorney for the Northern District of California, it is the responsibility of companies selling goods and services online to ensure that material information is disclosed to consumers in a clear and prominent manner.
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The lawsuit filed by both the Justice Department and the Federal Trade Commission points out the involvement of Adobe, a California-based company, along with its president of Digital Media Business, David Wadhwani, and Maninder Sawhney, vice president of Digital Go to Market and Sales at Adobe.
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. The lawsuit claims that Adobe had imposed a hidden “Early Termination Fee” on millions of subscribers, which made it difficult for them to cancel their subscriptions. The cancellation process was designed to discourage customers from canceling their subscriptions, as it was complex and challenging.
“The FTC’s Bureau of Consumer Protection Director Samuel Levine accused Adobe of locking customers into year-long subscriptions by employing hidden early termination fees and placing numerous hurdles in the way of cancellation,” according to Levine.
The defendants are being targeted by the federal government, which aims to impose unspecified monetary civil penalties on them. Additionally, the government is seeking a permanent injunction that will prevent the defendants from committing any future violations.
Levine emphasized that Americans are fed up with companies that conceal important details during subscription sign-ups only to create obstacles when they try to cancel. He asserted that the FTC will persist in safeguarding Americans from these illegal business practices.
The lawsuit alleges that Adobe has been consistently violating ROSCA and has been benefiting from it for a long time. Adobe has been using fine print and inconspicuous hyperlinks to obscure essential information about their subscription plans, including a substantial Early Termination Fee that customers may incur upon canceling their subscriptions.
According to the complaint, Adobe was accused of violating ROSCA by not offering a straightforward way for consumers to cancel their online subscriptions. It was alleged that Adobe prioritized subscription revenue over consumer satisfaction by making it difficult for subscribers to cancel their subscriptions. The cancellation process was described as confusing and inefficient, filled with unnecessary steps, delays, and unsolicited offers and warnings.
Like Publishers Clearing House and Amazon before it, Adobe has been accused of violating the Restore Online Shoppers’ Confidence Act of 2010.
On the same day last year that the FTC filed a complaint against Adobe, they also accused Amazon of using “dark patterns” to deceive customers into signing up for its Prime subscription service and making it challenging to cancel. The FTC alleged that Amazon had taken advantage of customers by using manipulative tactics.
