The Federal Trade Commission (FTC) is taking action against software giant Adobe and two of its executives, Maninder Sawhney and David Wadhwani, for allegedly deceiving consumers by hiding the early termination fee for its most popular subscription plan and making it difficult for consumers to cancel their subscriptions.

A federal court complaint filed by the Department of Justice (DOJ) upon notification and referral from the FTC alleges Adobe pushed consumers towards the 'annual paid monthly' subscription without adequately disclosing that cancelling the plan in the first year could cost hundreds of dollars.

Sawhney is a vice president at Adobe, while Wadhwani is the president of Adobe's digital media business.

Adobe shifted primarily to a subscription model after 2012, with subscriptions accounting for most of the company's revenue. The complaint alleges Adobe prominently shows the plan's 'monthly' cost during enrolment, but hides the early termination fee (ETF) and its amount, which is 50 percent of the remaining monthly payments when a consumer cancels in their first year. The FTC said Adobe's ETF disclosures are buried on the company's website in small print or require consumers to hover over small icons to find the disclosures.

The complaint also alleges Adobe used the ETF to deter consumers from cancelling their subscriptions and that Adobe's cancellation processes are designed to make cancellation difficult for consumers.

The complaint charges that Adobe's practices violate the Restore Online Shoppers' Confidence Act. The Commission vote to refer the civil penalty complaint to the DOJ for filing was 3-0. The DOJ filed the complaint in the U.S. District Court for the Northern District of California.

"Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles," said Samuel Levine, Director of the FTC's Bureau of Consumer Protection.

"Americans are tired of companies hiding the ball during subscription signup and then putting up roadblocks when they try to cancel. The FTC will continue working to protect Americans from these illegal business practices."