Adobe To Pay $150 Million To Settle Lawsuit Over Deceptive Subscription Fees

Adobe has agree to pay $150 million to settle a case brought against it and two of its employees by the U.S. Department of Justice over accusations of hidden early termination fees and deceptive subscription practices. The settlement includes $75 million in civil penalties and another $75 million in free services. Adobe also agreed to a series of stipulations to prevent any confusion in the future.

The lawsuit was initiated by the Federal Trade Commission (FTC) back in June 2024 following an investigation that began in December 2023, with the agency claiming that Adobe's hidden early termination fees effectively "trapped customers into year-long subscriptions."

One of the main issues the FTC took exception with was how Adobe presented its subscription options. From the FTC's perspective, the monthly payment option for subscribers did not make it clear enough that users were agreeing to a year-long commitment, and that ...