Adobe has agreed to a $75 million payment to the United States government to settle a lawsuit concerning its subscription practices. The joint complaint, filed in 2024 by the US Department of Justice and the Federal Trade Commission, alleged that the company utilized a harmful approach to its subscription services.
The federal complaint specifically accused Adobe of deliberately making the cancellation process difficult for customers. Additionally, the government alleged that the company obscured the expensive early termination fees required to exit “annual plans, paid monthly.”
This early termination fee was designed to compensate Adobe for the value lost by initially offering its software at a discounted rate. While Adobe currently allows full refunds for plans canceled within the first 14 days of signing up, canceling after this window still triggers a substantial fee, which the company details on its support page.
In response to the settlement, Adobe has denied any wrongdoing. “While we disagree with the government’s claims and deny any wrongdoing, we are pleased to resolve this matter,” the company stated.
Beyond the $75 million payment to the Department of Justice, Adobe will also compensate affected consumers. “We have agreed to provide $75 million worth of free services to customers that qualify,” the company noted, adding that it will proactively contact those affected once court filings are finalized and accepted.
Furthermore, Adobe stated that it has updated its subscription procedures, making both the sign-up and cancellation processes “more streamlined and transparent.”
The proposed settlement remains pending and requires court approval before the lawsuit is fully resolved.
This legal development coincides with a major leadership change at the company. Shantanu Narayen, who has served as Adobe’s CEO for the past 18 years and led the company’s shift from a traditional software model to a software-as-a-service business, recently announced his plans to retire.