Adobe back on the hook over subscription plan terms

A federal magistrate judge revived a class action against Adobe over its subscription renewal terms, reversing his own earlier dismissal of the case. Judge Nathanael Cousins ruled that Adobe waived its right to compel arbitration by continuing to fight the case in court and asking a judge, rather than an arbitrator, to decide procedural questions.

The ruling describes Adobe's early-termination clause, which charges a lump sum of 50% of a remaining annual contract if a user cancels after 14 days, as disclosed only through a link during final checkout. Cousins wrote that the cancellation process is 'designed to be confusing and frustrating.' Claims for conversion, unjust enrichment, and negligent misrepresentation will proceed, though the class cannot seek injunctive relief or disgorgement.

Attorneys for both sides did not respond to requests for comment.

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