Adobe Settles $75M Lawsuit Over Subscription Cancellation Hurdles, Offers Free Services to Users

Adobe has agreed to pay $75 million to settle a lawsuit in the US over a complicated subscription cancellation process. Additionally, the company will provide customers with free services of the same value.

What is Known

The lawsuit against the company was filed in 2024 by the US Department of Justice and the Federal Trade Commission. Regulators claimed that Adobe complicated the users' process to unsubscribe and was not transparent enough about the early termination fee.

This mainly concerns the annual subscription plan with monthly payments. If users tried to cancel their subscription before the end of the first year, they had to pay a significant penalty for early termination. According to regulators, information about these conditions was not prominent enough during the subscription process.

Adobe stated that it disagrees with the accusations and denies any wrongdoing, but decided to settle the matter. The company also noted that it has already made the subscription and cancellation processes more understandable and transparent.

Currently, users can get a refund if they cancel their subscription within 14 days of signing up. After that, an early termination fee may apply for canceling the annual plan. The settlement agreement still needs to be approved by the court.

Source: Reuters