04:10 PM EDT, 06/17/2024 (MT Newswires) -- Adobe (ADBE) on Monday was accused by the Federal Trade Commission of using deceptive practices to hide termination fees and preventing customers from easily cancelling their subscriptions to the company's Photoshop and Acrobat software programs.

In a complaint filed by the Department of Justice with the US District Court for the Northern District of California, the FTC said it was taking action against the company, David Wadhwani, president of the Adobe's digital business, and Adobe senior vice president Maninder Sawhney.

According to the complaint, Adobe deceived consumers by pushing them toward the "annual paid monthly" plan without adequately disclosing that canceling the plan in the first year could cost hundreds of dollars. It also alleged Adobe created barriers in the cancellation process to deter customers from ending their plans.

"Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles," FTC Bureau of Consumer Protection Director Samuel Levine said in a statement. "The FTC will continue working to protect Americans from these illegal business practices."

A disclosure that requires subscribers to pay 50% of the remaining monthly payments when they cancel in their first year is "buried" in the small print, according to the FTC. The regulator said it and the Better Business Bureau have received consumer complaints about the issue, the federal complaint said.

Adobe disputed the allegations and said its priority has always been to ensure its customers have a positive experience. Adobe subscription services offer "convenient, flexible and cost effective" options that fit consumers' needs, timeline and budget, it said in a statement.

"We are transparent with the terms and conditions of our subscription agreements and have a simple cancellation process," said Adobe General Counsel Dana Rao. "We will refute the FTC's claims in court."

The FTC alleged Adobe continued with these practices despite being aware of customers' confusion about the early termination fee.

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