Adobe agrees to pay settlement for making its subscriptions hard to cancel

"While we disagree with the government's claims and deny any wrongdoing, we are pleased to resolve this matter. We have agreed to provide $75 million worth of free services to customers that qualify. We will proactively reach out to the affected customers once the appropriate filings with the Court are made and accepted. Additionally, we have agreed to a $75 million payment to the Department of Justice."

"A major sticking point of the original complaint is that canceling an annual plan, paid monthly subscription before completing the first year of service required customers to pay an early termination fee to make up for the value Adobe lost initially offering its software at a discount."

Adobe agreed to pay $75 million to settle a 2024 lawsuit filed jointly by the Department of Justice and Federal Trade Commission. The government alleged Adobe deliberately obscured early termination fees and made subscription cancellation difficult for customers with annual plans paid monthly. Under the settlement, Adobe will provide $75 million in free services to affected customers and pay an additional $75 million to the DOJ. The company has streamlined its subscription signup and cancellation processes to be more transparent. Currently, customers can receive refunds within 14 days of signup, but canceling after that period requires paying substantial early termination fees. Court approval is required to finalize the settlement.

Read at Engadget