"The US Justice Department accused Adobe of breaking federal consumer protection laws by failing to properly disclose important terms for its "annual paid monthly" plans, and forcing Creative Cloud subscribers through an "onerous and complicated" cancellation process. The lawsuit said that customers would then be "ambushed" with early termination fees."
"Adobe says it will also provide $75 million worth of free services to "affected customers" alongside the payment it's making to the DOJ, providing the settlement is given final court approval. In its statement, Adobe denies any wrongdoing and says that it has improved transparency around subscription terms and conditions, plan details, and cancellation processes in recent years."
"We have always prioritized giving our customers the flexibility to choose the plan that best fits their needs, timeline, and budgets. This includes offering multiple types of plans where customers can choose between lower upfront costs and maximum flexibility. While we disagree with the government's claims and deny any wrongdoing, we are pleased to resolve this matter."
Adobe agreed to pay $75 million to settle a Justice Department lawsuit filed in June 2024 that accused the company of violating federal consumer protection laws. The government alleged Adobe made subscription cancellations intentionally difficult, failed to disclose important terms for annual paid monthly plans, and ambushed customers with early termination fees. Adobe will also provide $75 million in free services to affected customers pending court approval. The company denies wrongdoing but states it has improved transparency regarding subscription terms and cancellation processes. The settlement comes as Adobe CEO Shantanu Narayen announced his planned departure after 18 years leading the company's transition to subscription-only models.
#consumer-protection #subscription-practices #legal-settlement #deceptive-cancellation-practices #adobe
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