The Federal Trade Commission (FTC) has sued Adobe and two of its executives, Maninder Sawhney and David Wadhwani, accusing the company of “deceiving consumers by concealing early termination fees for its most popular subscription plans and making it difficult for consumers to cancel their subscriptions.” Wadhwani serves as president of Adobe’s Digital Media division, while Sawhney is a vice president at Adobe.

The Justice Department has filed a complaint against Adobe in federal court following a referral from the FTC. The complaint alleges that Adobe lured customers into a “pay monthly versus yearly” subscription plan without clearly informing them that cancellations within the first year could result in fees of hundreds of dollars.

“Adobe has lured customers into year-long subscriptions through hidden early termination fees and multiple cancellation barriers,” Samuel Levin, director of the FTC’s Bureau of Consumer Protection, said in an FTC press release. “Americans are tired of companies hiding the ball during subscription registrations and then putting up barriers when you try to cancel.”

The lawsuit claims that “in numerous cases, customers who have requested cancellations through Adobe’s customer service believe they have successfully cancelled, but continue to be charged… Some of these customers do not realize for months that Adobe is continuing to charge them, and only become aware of the charges when they review their financial accounts.”

Adobe has also responded to the FTC lawsuit. The company says it will fight the FTC’s claims in court. Its general counsel and chief trust officer released a statement: “Subscription services are convenient, flexible, and cost-effective, allowing users to choose the plan that best suits their needs, timelines, and budgets. Our priority is always to ensure our customers have a positive experience. We are transparent with the terms and conditions of our subscription agreements and have a simple cancellation process. We will fight the FTC’s claims in court.”

At the center of the controversy is Adobe’s Creative Cloud software. This set of programs allows for apps for photo and video editing, website creation, and graphic design. According to the FTC’s lawsuit, customers have expressed dissatisfaction with Adobe’s cancellation process through social media and the Better Business Bureau.

Before 2012, Adobe sold its software through a user license model, where customers paid a one-time fee for indefinite use. Now, Adobe offers three subscription options: monthly, annual paid monthly, or annual prepaid. On its website, Adobe has listed the monthly plan at Rs 6,945.48 per month, the annual plan at Rs 1,915.14 per month, and the annual prepaid plan at Rs 21,070.08 per year.

At the time of writing the story, the Adobe India website showed refund, cancellation and billing information next to the price. But we are not sure if this information is new or has appeared on the website before.