Insights

Feds Sue Adobe Over Subscription Cancellation Policies

Written by Larry Walsh | Jun 18, 2024 2:11:19 PM

The Department of Justice is suing Adobe, accusing the Software-as-a-Service vendor of making subscription cancellation a difficult process; the lawsuit is a warning to other vendors selling through the recurring-revenue model.

The federal government is taking legal action against Adobe over what it deems as deceptive and difficult subscription cancellation policies and mechanisms. While the lawsuit appears to be a consumer-based issue, it’s not. Even if Adobe comes out on top, the lawsuit serves as a cautionary warning to all vendors looking to get into the subscription model.

Here’s the story: The U.S. Department of Justice filed suit against Adobe, the purveyor of market-leading creative content software such as Photoshop and Illustrator. The government is accusing Adobe of purposely obscuring cancellation policies, hiding fees, and making the cancellation process arduous.