Adobe Settles US Lawsuit for $75 Million

Adobe Inc. will pay $75 million to resolve a U.S. government lawsuit filed in June 2024, which accused the company of concealing termination fees and complicating subscription cancellations. The San Jose, California-based software firm announced on Friday that it will also provide an additional $75 million in free services to customers, pending court approval. The U.S. Department of Justice and the Federal Trade Commission alleged that Adobe violated the Restore Online Shoppers’ Confidence Act by obscuring significant termination fees, sometimes reaching hundreds of dollars, within fine print or behind digital elements for its "annual paid monthly" subscription plan.

The lawsuit further claimed that Adobe's cancellation process was intentionally difficult, requiring online users to navigate multiple pages and phone callers to repeat information to various representatives, encountering resistance and delays. Adobe stated on its website that it has streamlined its sign-up and cancellation processes for greater transparency, denying wrongdoing but expressing satisfaction with the resolution. Subscriptions constituted 97% of Adobe's $6.4 billion revenue for the quarter ending February 27.