Adobe to pay $75M civil penalties, $75M free services: DOJ

Adobe has reached a settlement with the U.S. Department of Justice (DOJ) to resolve a 2024 lawsuit alleging deceptive subscription practices, agreeing to pay $75 million in civil penalties and provide $75 million in free services to affected customers, the company announced on March 13, 2026. The settlement concludes a case initiated by the DOJ and the Federal Trade Commission (FTC), which had accused Adobe of violating the Restore Online Shoppers’ Confidence Act (ROSCA) by obscuring early termination fees (ETFs) and complicating cancellation processes for its popular “annual paid monthly” subscription plan according to FTC press release.

The government's complaint alleged that Adobe's practices included burying ETF disclosures in small print or hyperlinks, pre-selecting the annual plan as a default, and designing cancellation procedures to deter customers from exiting subscriptions as detailed in the FTC complaint. Consumers reportedly faced challenges such as navigating multiple pages to cancel online, encountering delays in customer service, and being charged after believing they had terminated their subscriptions according to FTC findings.

Adobe denied wrongdoing in its statement, asserting that it provides "transparent" terms and has improved cancellation processes in recent years according to Adobe's announcement. The company will proactively notify eligible customers about the free services portion of the settlement, which includes extended access to its software as reported on Reddit. The case, filed in June 2024, marked a significant regulatory pushback against subscription-based business practices deemed misleading or obstructive according to FTC press release.

The settlement underscores growing scrutiny of subscription models, with regulators emphasizing the need for clarity and simplicity in consumer agreements. Adobe's agreement includes compliance measures to prevent future violations as stated in the settlement announcement.