Adobe has reached a $150 million settlement with the U.S. government over allegations that the company deliberately made its subscriptions difficult to cancel. The deal sends $75 million in civil penalties to federal coffers and directs another $75 million in free services toward affected customers.
The case dates to 2024, when the Department of Justice and the Federal Trade Commission sued Adobe over its subscription practices.
Regulators said the company hid early termination fees and built a cancellation process designed to frustrate rather than assist — violations, they argued, of the Restore Online Shoppers' Confidence Act (ROSCA), which requires clear disclosure of subscription terms and a straightforward exit for customers.
What Adobe was accused of
Adobe's "annual paid monthly" plans offer lower monthly rates tied to a year-long commitment. The problem, according to regulators, was that early termination fees, potentially hundreds of dollars, weren't clearly disclosed upfront.
Customers who tried to cancel also reported hitting multiple screens, retention pitches, and confusing prompts seemingly designed to wear down their resolve.
What changes now
Under the settlement, Adobe must disclose cancellation fees before users sign up, alert customers when free trials are about to convert to paid plans, and simplify the cancellation process. Eligible customers can expect to hear from Adobe about claiming free services once a court approves the deal, though specifics haven't been announced.
Adobe says the settlement closes the matter but maintains it didn't violate any laws, and says it remains committed to greater transparency.
The case reflects growing regulatory pressure on subscription models industrywide — and a clear signal that the "easy to join, hard to leave" approach is facing serious legal consequences.
Adobe says it will contact eligible customers once the settlement receives court approval — though what services will be offered, and how to claim them, is yet to be confirmed.
