Deceptive Subscription & 'Dark Patterns' Auto-Renewal Class Action

In June 2024, the U.S. Federal Trade Commission (FTC) filed a landmark lawsuit against Adobe Inc. and two of its executives, alleging the software giant used deliberately deceptive tactics — commonly known as 'dark patterns' — to enroll consumers in annual Creative Cloud subscriptions without adequately disclosing an early termination fee (ETF) that could amount to hundreds of dollars. The FTC alleged that Adobe buried the fee in fine print, steered users away from monthly plans, and made the cancellation process intentionally cumbersome, requiring multiple steps across different websites to discourage subscribers from quitting. Private class action lawsuits raising similar claims were filed in parallel in federal court in California.

The class action suits allege violations of California's Consumer Legal Remedies Act (CLRA), Unfair Competition Law (UCL), and federal consumer protection statutes. Plaintiffs contend that Adobe's annual subscription enrollment flow was deliberately designed to obscure the ETF — which can equal 50% of the remaining contract value — from consumers who believed they were signing up for a straightforward monthly plan. The FTC litigation and private class actions are proceeding concurrently, placing significant pressure on Adobe to reform its subscription practices and potentially pay substantial restitution to affected subscribers across the United States. The case is widely seen as a bellwether for regulatory action against subscription-based software companies using similar dark-pattern tactics.