Judge revives class action against Adobe over subscription renewal terms

In San Jose, a federal magistrate judge revived a putative class action against Adobe concerning the terms of its automatically renewing subscription plans. Judge Nathanael Cousins concluded that Adobe abandoned its right to compel arbitration by persisting in litigation, rendering the opt-out clause procedurally unconscionable. The ruling vacated a prior dismissal and permits plaintiffs to pursue claims for conversion, unjust enrichment and negligent misrepresentation, while prohibiting injunctive or disgorgement remedies.

Adobe's "annual, billed monthly" plan, which lacks clear early-termination fee disclosures, was described as confusing and designed to frustrate cancellations. Users who cancel after 14 days may be charged 50% of the remaining contract value, a charge the judge said many consumers were unaware of. The court found that these practices caused financial harm through unauthorized charges and difficult cancellation processes.