Adobe to pay $75m to settle US lawsuit over hard-to-cancel subscriptions

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Adobe will pay $75 million to resolve a lawsuit from the US government. The government accused Adobe of intentionally making it hard for customers to cancel their subscriptions and not being upfront about cancellation fees.

So, the US Department of Justice filed a complaint against Adobe back in June 2024. Basically, they’re saying Adobe broke the rules with how they advertised and handled their Creative Cloud subscriptions – they think it messed with consumer protection laws. It’s a pretty big deal, and I’m keeping an eye on it as someone who uses Creative Cloud all the time.

The lawsuit claims Adobe didn’t clearly explain the terms of its monthly subscription plans. Additionally, the government argues that canceling those subscriptions was made unnecessarily difficult and complicated for customers.

The Department of Justice also alleged that Adobe surprised customers with unexpected cancellation fees when they tried to end their subscriptions. One Adobe executive even likened these fees to an addictive substance, comparing them to heroin.

Adobe has reached a settlement, pending court approval, that will provide $150 million in value to affected customers. This includes a $75 million payment and another $75 million in free services.

Adobe denies wrongdoing while agreeing to settlement

Adobe stated they don’t agree with the claims made against them, but are choosing to settle the issue anyway to move forward.

Our customers have always been able to pick the plan that works best for them, considering their individual needs, how quickly they need it, and their budget. We offer a variety of plans, allowing people to choose between paying less upfront or having more flexibility.

Although we don’t agree with the government’s statements and maintain we did nothing wrong, we’re happy to have reached a resolution.

As a long-time Adobe user, I’ve noticed they’ve really been working on making things clearer lately. It’s great to see they’ve updated how they explain subscriptions, what’s included in each plan, and how to cancel if you need to – it’s way easier to understand now.

This agreement follows the recent announcement that Adobe CEO Shantanu Narayen will be leaving his position after 18 years at the helm. He plans to stay on until a new CEO is chosen.

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2026-03-13 22:48