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Adobe Settles DOJ Hidden Cancellation Fee Lawsuit for $75 Million Plus Free Services

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Adobe logo on building representing DOJ settlement over Creative Cloud hidden cancellation fees

Adobe has settled a Department of Justice lawsuit over the company's practice of hiding large early-termination fees in Creative Cloud subscriptions, agreeing to pay a $75 million penalty and provide unspecified free services to qualifying customers. The DOJ sued Adobe in 2024 for violating the FTC's Click-to-Cancel rule by burying fees in subscription sign-up flows that customers did not fully understand. The settlement resolves years of consumer complaints about Creative Cloud's annual plan structure, which charges 50% of remaining contract value as a fee if cancelled in the first year.

Key Takeaways

  • Adobe to pay $75M penalty to DOJ; qualifying customers also receive unspecified free product access
  • DOJ filed original lawsuit in 2024 citing FTC's Click-to-Cancel rule violations in Creative Cloud sign-up flows
  • Settlement announced March 13, 2026; Adobe has not disclosed exact eligibility criteria for free service compensation

Original source: Ars Technica