Adobe Inc. (Nasdaq: ADBE) is facing a class action lawsuit alleging the software giant uses misleading enrollment processes and hidden fees to trap customers in costly annual subscriptions they believe are monthly plans.
The lawsuit, filed Monday in federal court in San Jose, claims Adobe’s “Annual, billed monthly” subscription option deceives consumers by displaying only monthly payment amounts while obscuring that customers are committing to year-long contracts with substantial early termination fees.
Plaintiffs Stephanie Wohlfiel of California and Vianca Marquez of Nebraska say they purchased what they believed were flexible monthly subscriptions, only to discover later they faced early termination fees of 50% of their remaining contract value if they tried to cancel.
According to the complaint, a Federal Trade Commission investigation found that one Adobe executive referred to the hidden termination fee as being “a bit like heroin for Adobe,” saying there was “absolutely no way to kill off” the fee without taking “a big business hit.”
The lawsuit alleges Adobe’s most profitable subscription plan relies on an intentionally confusing enrollment process that buries key terms in fine print and makes cancellation deliberately difficult.
Adobe, which offers popular software including Photoshop and Illustrator, generated $21.51 billion in revenue in 2024. The FTC filed a separate complaint against the company earlier this year over similar subscription practices.
The plaintiffs are seeking damages and changes to Adobe’s subscription practices on behalf of customers nationwide.
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