Adobe Sued By FTC Over Hidden Fees, Cancellation Issues

The FTC alleges Adobe makes it hard for customers to cancel subscriptions, resulting in early termination fees. Here's what you need to know.

outside of Adobe headquarters in San Jose, California
(Image credit: David Paul Morris/Bloomberg via Getty Images)

The Federal Trade Commission (FTC) is taking action against Photoshop parent Adobe (ADBE) and two of its executives for allegedly hiding early termination fees and making it difficult for consumers to cancel their subscriptions.

Adobe pushed customers to subscribe to "annual paid monthly" plans without properly disclosing that they would be required to pay an early termination fee – which is 50% of the remaining monthly payments – if they cancel in their first year, the FTC said in its complaint

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Joey Solitro

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.