The lawsuit follows recent controversy over Adobe's new terms of service, which some users interpreted as allowing Adobe to reproduce, display, or modify their content. This led to an outcry from artists and designers, with some even quitting the platform. Despite Adobe's attempts to clarify the terms, many customers remain dissatisfied. The company has been under government scrutiny for its subscription practices since June 2022.
Key takeaways:
- The Department of Justice has sued Adobe, alleging that the company violated consumer protection laws by hiding expensive fees and making it difficult to cancel subscriptions.
- The lawsuit follows a Federal Trade Commission investigation into Adobe's practices, with the complaint stating that Adobe entices people into its most lucrative subscription plan without clearly disclosing important terms.
- Adobe is also facing backlash from artists and designers who were concerned about new terms of service that suggested their content could be used by Adobe in ways they did not agree with.
- Despite the controversies, Adobe has seen significant financial success with its subscription model, nearly doubling its subscription revenue from 2019 to 2023, to $14.2 billion.