Adobe agreed to pay $75 million to resolve a lawsuit filed by the U.S. government alleging the company concealed subscription cancellation fees and made it difficult for customers to terminate plans. The settlement also includes $75 million in free services for customers, pending court approval.
The complaint, filed in June 2024 by the U.S. Department of Justice and the Federal Trade Commission, accused Adobe of hiding termination fees tied to its “annual paid monthly” subscription plans. Regulators said the company buried key pricing terms in fine print or behind hyperlinks, with some cancellation penalties reaching hundreds of dollars.
Authorities also alleged that Adobe’s cancellation process required users to navigate multiple pages online or interact with several representatives when attempting to cancel by phone. The agencies said the practices violated the Restore Online Shoppers’ Confidence Act, which requires clear disclosure of automatic renewal terms and charges.
Adobe said it disagrees with the government’s claims but chose to settle the case. The company added that it has already streamlined its sign-up and cancellation processes in recent years to improve transparency. Subscriptions accounted for about 97% of Adobe’s $6.4 billion in revenue for the quarter ending February 27.
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