Adobe announced it will pay $75 million to settle a lawsuit filed by the United States government, which accuses the creative software giant of harming consumers by making its subscriptions intentionally difficult to cancel and hiding termination fees.
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This payment is aimed at resolving a complaint filed in June 2024, in which the U.S. Department of Justice accused Adobe of violating federal consumer protection laws by failing to properly disclose important terms for its “annually paid per month” plans and forcing Creative Cloud subscribers to go through a “laborious and complicated” cancellation process.
The lawsuit said customers were then “shocked” with early termination fees — something an Adobe executive described as “a little bit like heroin for Adobe.”
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Adobe says it will also provide $75 million in free services to “affected customers” in addition to the payment it makes to the Justice Department, provided the settlement receives final court approval. In its statement, Adobe denies any wrongdoing and says it has improved transparency around subscription terms and conditions, program details and cancellation processes in recent years.
“We always prioritize giving our customers the flexibility to choose the plan that best fits their needs, timelines, and budgets. This includes offering multiple plan types where customers can choose between lower upfront costs and maximum flexibility,” Adobe said in a statement. “While we disagree with the government’s allegations and deny any wrongdoing, we are pleased to resolve this matter.”
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The announcement comes shortly after Adobe CEO Shantanu Narayen revealed that he plans to step down after 18 years at the helm of the company, once a successor is selected to replace him. Adobe’s shift from offering one-time software licenses to subscription-only models came about under Narayen’s leadership. Now, it’s up to the courts to decide whether Adobe’s settlement offer will be greenlit — although the current administration has already shown a preference for hidden subscription fees.
