Adobe to Pay $150 Million Settlement in Subscription Cancellation Lawsuit

The United States Department of Justice (DOJ) filed a lawsuit against Adobe back in June 2024, alleging that the company hid fees and made it excessively challenging for its customers to cancel subscriptions. Adobe and the DOJ settled the lawsuit today, and Adobe will pay the DOJ $75 million and provide affected customers with $75 million worth of free services. Adobe maintains it did nothing wrong.

“For years, Adobe has harmed consumers by enrolling them in its default, most lucrative subscription plan without clearly disclosing important plan terms,” the DOJ wrote in its lawsuit in 2024.

“Adobe fails to adequately disclose to consumers that by signing up for the ‘Annual, Paid Monthly’ subscription plan, they are agreeing to a yearlong commitment and a hefty early termination fee that can amount to hundreds of dollars. Adobe clearly discloses the early termination fee only when subscribers attempt to cancel, turning the stealth early termination fee into a powerful retention too that [redacted] by trapping consumers in subscriptions they no longer want.”

In the case of the United States of America v. Adobe, the government sought injunctive relief, civil penalties, monetary relief, and vague additional relief. The government has at least gotten some money out of the case but if it is hoping that Adobe will take any real ownership of the claimed offenses, it will be waiting a while.

“We have now finalized a settlement agreement with the Department of Justice that will bring to an end the litigation filed in June 2024 related to our disclosure and subscription cancellation practices. While we disagree with the government’s claims and deny any wrongdoing, we are pleased to resolve this matter,” Adobe said today in a statement on the settlement. “We have agreed to provide $75 million worth of free services to customers that qualify. We will proactively reach out to the affected customers once the appropriate filings with the Court are made and accepted. Additionally, we have agreed to a $75 million payment to the Department of Justice.”

$150 million is about 0.6 percent of Adobe’s 2025 revenue, not too different from the average American worker getting a speeding ticket.

“We are transparent with the terms and conditions of our subscription agreements, have a simple cancellation process and clearly disclose the details of our plans, which we carefully crafted to maximize value and benefits to our customers. In recent years, we have made our sign-up and cancellation processes even more streamlined and transparent,” Adobe claims.

The company simultaneously denies any wrongdoing and says that the DOJ’s claims are incorrect while simultaneously admitting it has worked to make its cancellation processes “more streamlined and transparent.” So, easier and with fewer hidden fees, then.

Image credits: Header photo created using an image licensed via Depositphotos.