Software company Adobe is preparing to shell out tens of millions of dollars to settle allegations involving its subscription practices.
The U.S. Department of Justice says Adobe has agreed to a $150 million settlement to resolve accusations that it violated the Restore Online Shoppers’ Confidence Act (ROSCA), which requires firms that offer online subscriptions to clearly disclose important subscription information and to provide subscribers with simple ways to cancel.
According to court documents filed with the U.S. District Court for the Northern District of California, Adobe allegedly used “fine print and inconspicuous hyperlinks” to conceal important details about its subscription plans, including a big early termination fee that customers may be charged when they cancel the service.
Adobe is also accused of making it difficult for users to cancel their subscription using convoluted and inefficient cancellation processes filled with unnecessary steps, delays, unsolicited offers and warnings.
Says Assistant Attorney General Brett A. Shumate, head of the Justice Department’s Civil Division,
“American consumers deserve the right to make informed choices when deciding where to spend their hard-earned money. The Justice Department will strongly oppose any attempt to harm Americans with deceptive and unfair business practices.”
While the company denies any wrongdoing, it has agreed to the government’s proposal to pay $75 million in civil penalties and offer customers $75 million in free services.
Says Adobe,
“We are transparent with the terms and conditions of our subscription agreements, have a simple cancellation process and clearly disclose the details of our plans, which we carefully crafted to maximize value and benefits to our customers. In recent years, we have made our sign-up and cancellation processes even more streamlined and transparent.”
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