REGULATORY · COMPETITIVE · USA
Adobe settles DOJ cancellation-fee lawsuit, pays $75 million
Change
Adobe settled a Department of Justice lawsuit over hidden subscription cancellation fees and agreed to pay a $75 million penalty and provide matching free services to affected users.
Why it matters
U.S. federal authorities sued Adobe in 2024 over practices that hid termination fees for Creative Cloud subscriptions. Adobe shifted its editing tools to monthly subscriptions beginning in 2013 after offering perpetual licenses such as CS6. The settlement requires payment of a $75 million penalty and provision of matching free services to users. The remedies address cancellation fees that were disclosed in fine print or behind hyperlinks.
Implications
- • Payment of a $75 million civil penalty by Adobe.
- • Provision of matching free services to affected users as remediation.
- • Resolution of the DOJ lawsuit filed in 2024 over hidden subscription cancellation fees.
Who is affected
- • Creative Cloud subscribers and other Adobe product users
- • Adobe legal, compliance, billing, and product teams
- • U.S. federal enforcement authorities
Source
Topics
Law & Public Safety Regulatory Actions Compliance Technology & Innovation Big Tech