Adobe Sued Again Over Subscription Practices
Adobe Inc. (NASDAQ: ADBE) has been hit with another class action lawsuit, filed in the United States District Court for the Northern District of California. The lawsuit accuses the software giant of violating California’s Automatic Renewal Law (ARL), alleging deceptive subscription practices that make it difficult for consumers to cancel their memberships.
Vikram Singh, on behalf of himself and other similarly situated individuals, claims that Adobe failed to clearly disclose subscription terms, did not obtain affirmative consent for auto-renewal, and made the cancellation process unnecessarily complicated. The lawsuit enumerates multiple allegations including unfair competition, false advertising, and negligent misrepresentation.
Singh, a resident of Antioch, California, began a free trial of Adobe’s Creative Cloud All Apps 100GB in June 2022. Upon the trial’s expiration, Adobe automatically charged him a subscription fee of $29.99 per month. When Singh attempted to cancel, he discovered he had been enrolled in an annual plan paid monthly. Cancellation within the first 14 days required payment of 50% of the remaining annual balance, a term allegedly not clearly disclosed during enrollment.
“Defendant systematically violates the ARL by: (i) failing to present the automatic renewal offer terms in a clear and conspicuous manner and in visual proximity to the request for consent to the offer before the subscription or purchasing agreement is fulfilled… (ii) charging consumers’ Payment Methods without first obtaining their affirmative consent… (iii) failing to provide an acknowledgment that includes the automatic renewal offer terms, cancellation policy, and information regarding how to cancel in a manner that is capable of being retained by the consumer,” the lawsuit said.
California’s Automatic Renewal Law mandates that businesses offering auto-renewing subscriptions must present the terms clearly and conspicuously, obtain explicit consent before charging, and provide an easy mechanism for cancellation. The lawsuit alleges Adobe’s practices systematically violate these requirements.
The complaint highlights Adobe’s failure to present auto-renewal terms prominently, secure affirmative consent, and offer a straightforward cancellation process, resulting in consumers unknowingly locked into recurring payments. According to the suit, these violations entitle consumers to restitution and damages under California law.
The class action seeks to represent all California residents who, within the statutory period, incurred renewal fees for Adobe’s subscription services. The proposed class includes millions of consumers, indicating the potentially massive scope and impact of the lawsuit.
If successful, the lawsuit could lead to significant financial penalties for Adobe and substantial restitution for affected consumers.
This lawsuit follows the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) suing Adobe last month for allegedly engaging in deceptive subscription practices. The federal suit also claims that the tech company uses hidden fees and complex cancellation processes to lock consumers into long-term subscription plans without proper disclosure.
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