Adobe settles DOJ cancellation fee lawsuit, will pay $75 million penalty
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Adobe settles DOJ cancellation fee lawsuit, will pay $75 million penalty
"Core to the government's complaint was Adobe's practice of hiding cancellation fees for its subscriptions in the fine print or behind hyperlinks. Adobe charges 50 percent of the remaining subscription term when you cancel, which can be hundreds of dollars on annual plans. In addition, the company used labyrinthine phone trees to make canceling more difficult."
"Although anyone who has been paying monthly since the change has spent thousands of dollars on Adobe software. And when people noticed that and decided they wanted to cancel, many of them were frustrated with the outcome."
"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."
Adobe transitioned its Creative Cloud suite to subscription-based pricing in 2013, moving away from perpetual licenses that cost $700-$2,600. While monthly subscriptions ($10-$70) initially appeared affordable, long-term subscribers accumulated thousands in costs. The Department of Justice sued Adobe for deceptive practices, specifically hiding substantial cancellation fees—50% of remaining subscription term—in fine print and hyperlinks, and using complex phone systems to obstruct cancellations. Adobe settled by paying $75 million and providing matching free services to affected users.
Read at Ars Technica
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