Fee on termination

US government takes action against Adobe’s subscription model

Adobe wants to refute the allegations in court.(Bild: JAKUB MAZUR)

The US government is accusing Photoshop provider Adobe of luring consumers into a subscription trap and is therefore taking the company to court. The lawsuit focuses on the fee that Adobe charges for early termination of an annual subscription with monthly payment. 

The fee is 50 percent of the remaining contract value. Adobe does not adequately point out this payment when the subscription is concluded, but instead hides it in the small print as well as in text boxes and behind links, according to the lawsuit filed on Monday. The fee only becomes apparent when an attempt is made to cancel the subscription - and it keeps "consumers trapped in subscriptions they no longer want". Adobe's approach violates US consumer protection laws.

Adobe countered that its subscription conditions are transparent and that it offers a simple cancellation procedure. The company will refute the allegations in court.

Monthly subscription more expensive
Adobe began switching from selling its creative software to a subscription model more than a decade ago. Subscription revenues now make up a large part of the business. This is also a general trend in the software industry. However, subscriptions can often be canceled on a monthly basis. Adobe also has such a model - but it costs significantly more each month than an annual contract.