Adobe settles DOJ cancellation fee lawsuit, will pay $75 million penalty

Canceling a software subscription is supposed to be easy—that’s what US law dictates. Adobe, however, has played fast and loose with its Creative Cloud subscriptions in the past. The company was sued by the Department of Justice in 2024 due to its practice of hiding hefty termination fees when customers signed up. The case has now been settled, with Adobe agreeing to a $75 million fine and matching free services to users of its products.

Turning software into a monthly subscription is all the rage these days, but Adobe was way ahead of the curve. The company began offering its suite of editing tools, like Photoshop and Illustrator, as a monthly subscription back in 2013, and most of its customers migrated to the new system.

It was easy for Adobe to get away with that shift because CS6, the last perpetual license offered for its editing tools, started ...