Adobe to pay $75m to settle US lawsuit over hidden charges

The software company Adobe will pay the United States government $75 million to settle a lawsuit which claimed that Adobe misled its customers about subscription charges while making it hard for them to cancel their subscriptions. 

The US Department of Justice brought the case against Adobe in 2024 because the company had hidden its expensive cancellation fees from customers who purchased its popular subscription services, which included Adobe Photoshop and Adobe Acrobat.

The lawsuit claimed that Adobe’s subscription model harmed consumers by hiding hefty early termination fees and creating a complicated cancellation process. Authorities argued that customers were not clearly informed about the costs associated with ending subscriptions before the contract period.

As part of the settlement, Adobe will pay $75 million to the government and provide another $75 million worth of free services to customers who qualify.

In a statement, the company explained that its subscription service was intended to make its technology more accessible while enabling the company to provide customers with the benefits of continuous updates, cloud features, and services. The company also explained that it offers various plan options that enable customers to pick between cost savings and flexibility.

Adobe explained that it disagrees with the government's claims but admitted that it decided to settle the case in order to bring litigation to an end. The company also explained that it has been working over the past few years to make its sign-up and cancellation process clear and simple.

Customers who are eligible will be contacted once the settlement is given final approval by the court.

Adobe explained that it is now focused on continuing to create technology that helps users be creative and productive in its global community of users.