A class action lawsuit filed Friday accuses Adobe Systems Inc. of imposing illegal early termination fees on Adobe Creative Cloud subscribers after they were forced to move from a one-time fee model to a monthly subscription-based model to access the creative suite.
California resident Scotty Mahlum alleges in the Adobe Creative Cloud class action lawsuit, filed June 27, that he used to own a copy of the tech giant’s Adobe Creative Suite, which included editing tools such as Photoshop and Illustrator. However, the company decided to move from a business model where each customer had a physical copy of the software to one where they could only access these tools with an Internet connection to company servers known as the Adobe Creative Cloud.
The Adobe class action lawsuit alleges that because there is a one-year agreement required, the company is subject to California laws regarding early termination fees, which are considered some of the most stringent in the nation.
According to the Adobe Creative Cloud class action lawsuit, Adobe requires users to pay 50 percent of the remaining payments they otherwise would have made.
Mahlum alleges that the termination fees are particularly onerous because Adobe has minimal costs to itself once it has set up the system. The Adobe lawsuit goes on to note that the company claims that with the move from hard copies of programs to the subscription program, its revenue would be easier to forecast because of the consistent payments from so many users. That is compounded by the dominant market position that Adobe Creative Suite held.
While the Adobe class action lawsuit seeks to represent a nationwide group of plaintiffs who were allegedly charged excessive early termination fees because they cancelled their account before the one-year term was up. The complaint largely relies on California statutes including the state’s Unfair Competition Law and Consumer Legal Remedies Act.
In addition to the repayment of any early termination fees that users who cancelled their plans may have paid, the class action lawsuit seeks a permanent injunction for Adobe to not maintain the practice as well as any other additional damages that may be warranted.
The plaintiff is represented by class action lawyers L. Timothy Fisher, Annick M. Persinger and Yeremy Krivoshey of Bursor & Fisher, P.A.
The Adobe Creative Cloud Class Action Lawsuit is Scotty Mahlum v. Adobe Systems Incorporated, Case No. 14-cv-02988 in the U.S. District Court for Northern California.
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3 thoughts onOnerous Fees Spark Adobe Creative Cloud Class Action Lawsuit
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I just successfully CANCELLED my contract today by contacting Adobe Creative Cloud Chat Support!
You can too!
Here’s the chat thread…
Hi, we are currently helping other customers in line ahead of you. We’ll be with you as soon as possible.
While you wait, you can try our community forums where experts are online 24/7.
Thank you for contacting Adobe.
A representative will be with you shortly.
You are now chatting with ‘Fazal’
Fazal: Hello! Welcome to Adobe Customer Service.
jason: hi fazal
Fazal: Hi Jason.
jason: am I able to cancel? am I locked into 1yr?
Fazal: I understand you’re looking to cancel your membership, I’ll certainly check and see what can be done.
Fazal: Just to confirm may I know the reason for the subscription cancellation?
jason: my kids were supposed to use it extensively this summer, but they have been busy with other things.
Fazal: Okay,
Fazal: Thank you for the information.
Fazal: The annual plan you enrolled in offers lower monthly payments and requires a one-year commitment. This plan is ideal for someone with an ongoing need to use Adobe’s Creative software.
Fazal: If you decide to end your subscription before the one-year, you will be billed at 50% of your monthly rate for the remaining months in your annual contract.
Fazal: However, would you be willing to maintain your membership through your annual commitment and avoid the cancelation fee if I offer you the next month of your membership for free?
jason: i’ve never heard of commitment terms for software. I don’t think that will hold up.
Fazal: I am sorry Jason, if you have missed the Terms and Condition page.
Fazal: http://www.adobe.com/misc/subscription_terms.html
Fazal: Please click the above link to get the information on that.
jason: ok. i’ll be joining “Adobe Creative Cloud Class Action Lawsuit is Scotty Mahlum v. Adobe Systems Incorporated, Case No. 14-cv-02988 in the U.S. District Court for Northern California.”
Fazal: Okay.
Fazal: Let me know if you wish to continue the subscription if I get exception from my supervisor and offer you next two months free as you are loyal customer to Adobe.
jason: no. I’ll hold tight for now. I don’t agree with your contracts.
jason: thanks anyways
Fazal: You’re welcome.
Fazal: Can you allow me 2 – 3 minutes while I walk to my supervisor and check if we can cancel the subscription with no fee ?
jason: if you can. ty
Fazal: You’re welcome.
Fazal: Thank you for your patience.
Fazal: I have received an approval to cancel the subscription with no cancellation fee and I have skipped the cancellation fee and cancelled the subscription for this order number : AD00#######EDU
jason: thank you Fazal. I appreciate your consideration.
Fazal: You’re most welcome.
Fazal: I certainly appreciate your patience in this process.
Fazal: I’m happy to help. Do you have anymore questions for me?
jason: nope. that’s all. thanks.
Fazal: You’re welcome.
Fazal: Thank you for contacting Adobe. We are available 7 days a week, 24 hours a day. Goodbye!