Adobe To Pay USD 75 Million Penalty In US Subscription Case Settlement

Adobe has agreed to a USD 150 million settlement to resolve a lawsuit filed by the U.S. Department of Justice regarding disclosures of subscription cancellation and termination fees.

Adobe reached a settlement with the U.S. Department of Justice to resolve claims related to subscription practices. The agreement requires Adobe to pay a USD 75 million civil penalty and provide USD 75 million in services to customers. The settlement requires court approval. The case was filed in June 2024 by the Department of Justice and the Federal Trade Commission. Regulators alleged that Adobe failed to clearly disclose termination fees associated with its “annual paid monthly” subscription plan. The complaint also said users faced multiple steps when attempting to cancel subscriptions online or by phone.

Authorities said the practices violated the Restore Online Shoppers’ Confidence Act. Brett Shumate of the Justice Department said consumers should be able to make informed spending decisions. Adobe said it disagrees with the claims but agreed to resolve the case.