Adobe has agreed to pay $75 million to settle a lawsuit from the U.S. government accusing the company of making it difficult for customers to cancel subscriptions and failing to clearly disclose cancellation fees.
The case was filed in June 2024 by the U.S. Department of Justice, which claimed Adobe violated consumer protection laws through the way it marketed and managed its Creative Cloud subscription plans.
According to the lawsuit, Adobe’s “annual paid monthly” plans did not clearly explain key terms, and customers trying to cancel were pushed through what regulators described as a complicated and burdensome process. The complaint also alleged that some users were unexpectedly charged early termination fees when attempting to cancel.
Adobe said the settlement will resolve the case pending court approval. The company will pay $75 million and provide another $75 million in free services to affected customers.
In a statement, Adobe denied wrongdoing but said it chose to settle the matter to move forward. The company also noted it has recently made changes to improve transparency around subscription terms, pricing, and cancellation procedures.
The settlement comes as Adobe CEO Shantanu Narayen prepares to step down after leading the company for 18 years, though he will remain in the role until a successor is chosen.