Adobe Will Pay $75M in Free Services in DOJ Subscription Cancellation Case Settlement
- On Friday, Adobe finalized a $150 million settlement with the U.S. Department of Justice, paying $75 million and providing $75 million in free services, the company announced on its website.
- In 2024, the Federal Trade Commission and U.S. Department of Justice filed a complaint alleging Adobe defaulted customers into annual paid monthly subscription plans and hid costly cancellation fees.
- It requires clear pre-billing disclosure of terms including early cancellation fees, advance notices to free-trial users about conversion, and a simple cancellation process.
- Adobe says it will notify affected customers after the court accepts the settlement, while the Justice Department has not said if funds will return to consumers and the FTC declined comment.
- By the numbers, subscriptions accounted for 95% of Adobe's revenue in Q1 2024, while the complaint focused on a 50% early-termination fee on annual plans and unclear $75 million in free services eligibility.
26 Articles
26 Articles
Adobe to Pay £113M After US Justice Department Says It Made Subscriptions Too Hard to Cancel
Adobe has agreed to a £113 milliom ($150 million) total settlement with the US Department of Justice after the government alleged it buried cancellation fees in fine print and turned subscription exits into an obstacle course. The proposed stipulated order, filed on March 13, 2026 in the US District Court for the Northern District of California, requires Adobe to pay £56.7 million ($75 million) in civil penalties to the Justice Department and pr…
Adobe To Pay $150 Million To Settle Termination Fees, Subscription Lawsuit
Adobe reached a $150 million settlement to resolve a US government lawsuit accusing the Photoshop and Acrobat maker of harming consumers by concealing termination fees and making it difficult to cancel subscriptions, the Department of Justice said.
Adobe's $150 Million Settlement: A Victory for Online Shoppers
Adobe's $150 Million Settlement: A Victory for Online Shoppers In a significant move, the U.S. Justice Department revealed on Friday that Adobe Inc has consented to a $150 million settlement. The agreement addresses accusations that Adobe's subscription practices were in violation of the Restore Online Shoppers' Confidence Act.This settlement not only involves financial restitution but also an injunction aimed at ensuring adherence to consumer p…
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