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Adobe said on Friday it will pay $75 million and provide an additional $75 million in free services to resolve a lawsuit brought by U.S. regulators that accused the software company of obscuring cancellation terms and imposing costly fees on some subscribers.
The agreement with the Department of Justice would close litigation filed in June 2024 that centered on the company's annual paid monthly plan, which authorities said left many customers facing unexpected penalties if they attempted to end their subscriptions early.
Federal officials alleged that key details about termination charges were buried in fine print or tucked behind hyperlinks and text boxes, making it difficult for users to clearly understand the financial consequences of cancelling a plan.
Regulators also said people trying to cancel online were pushed through multiple screens, while those who called customer support often had to repeat their requests to several representatives and encountered delays before accounts were closed.
The company said it disagreed with the government's allegations and did not admit wrongdoing, but chose to settle the case while continuing to emphasize that its subscription model helps deliver ongoing updates, cloud features and new tools to users.
According to the company, customers are offered several plan options designed to balance flexibility and price, allowing users to choose between lower upfront costs or the ability to cancel more freely depending on their needs and budgets.
As part of the settlement, qualifying customers will receive credits in the form of free services valued at about $75 million, which the company said it will distribute after the required court filings are completed and approved.
The payment to the Justice Department totals $75 million and still requires approval from a federal court before the agreement can formally take effect.
Once finalized, the deal will end the dispute and allow the company to move forward as it continues developing creative software used by designers, businesses and digital professionals around the world.
The settlement follows broader scrutiny from regulators examining subscription practices across the technology industry, particularly policies that critics say complicate cancellations or hide significant termination charges.
