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Adobe Pays $75M Over Sticky Subscription Tactics
14 Mar
Summary
- Adobe will pay $75 million to settle government lawsuit.
- Suit alleged difficult cancellation and hidden fees.
- Settlement requires court approval for final resolution.
Adobe has agreed to a $75 million settlement to resolve a lawsuit filed by the US government over its subscription practices. The lawsuit, which began in 2024, alleged that Adobe deliberately complicated subscription cancellations and concealed significant early termination fees for annual plans paid monthly.
While Adobe denies any wrongdoing, the company has agreed to provide $75 million in free services to eligible customers and pay $75 million to the Department of Justice. Adobe claims it has since improved the transparency and ease of its subscription sign-up and cancellation processes.
The proposed settlement requires court approval to be finalized. This resolution comes shortly after Adobe's CEO, Shantanu Narayen, announced his retirement after 18 years leading the company's transition to a software-as-a-service model.
