Adobe To Pay Up $75M And Throw In Free Services For Hard-To-Cancel Subscriptions
Image © Chris Dorney | Dreamstime.com
Adobe is now paying a steep price after US regulators said leaving its services was far harder than signing up in the first place.
The company behind tools such as Photoshop, Acrobat, and Firefly has agreed to a US$150 million settlement tied to allegations that its subscription plans were difficult for customers to cancel. Under the agreement announced on March 13, 2026, Adobe will pay US$75 million in civil penalties to the US government and provide another US$75 million in free services to customers affected by the practices at the center of the dispute.
The settlement resolves a lawsuit filed in June 2024 by the US Department of Justice following an investigation by the Federal Trade Commission. Regulators claimed Adobe violated the Restore Online Shoppers’ Confidence Act, which requires companies to clearly disclose charges and obtain consent before enrolling consumers in recurring billing arrangements.
Authorities argued that Adobe’s subscription system pushed customers toward annual plans billed monthly while failing to adequately highlight cancellation terms. The complaint focused on the company’s widely used “annual paid monthly” option for products such as Creative Cloud, which reportedly carried early termination fees if users tried to cancel before the end of the year.
So many loopholes... it's like an Adobe subscription 🤪 https://t.co/beosj2p48F
— OssianLore (@OssianLore) March 14, 2026
Those penalties could reach hundreds of dollars and were sometimes equivalent to roughly half of the remaining payments owed under the contract, according to regulators. Officials said the details surrounding these fees were not clearly presented during the sign-up process, leaving some customers unaware of the financial consequences of ending their subscription early.
The lawsuit also described a cancellation process that regulators considered unnecessarily complicated. Customers attempting to end their subscriptions online were reportedly directed through multiple screens and prompts. Those who sought help by phone sometimes encountered repeated transfers or extended wait times. Regulators said these hurdles discouraged users from completing cancellations.
great, i have to pay to cancel my adobe subscription
— ð”©ð”²ð”«ð”ž.ð”¥ð”© (@lobotomy_user) March 13, 2026
most pathetic way to get me to keep my subscription lol pic.twitter.com/ANosSr3AHN
Adobe has denied wrongdoing but chose to settle the case in order to end the litigation. The San Jose-based company said it has already adjusted how it presents subscription terms and how customers can cancel their plans. The agreement still requires final approval from a federal court.
The dispute arrives at a time when subscription billing has become a standard model across the software industry. Adobe moved away from selling standalone licenses more than a decade ago, shifting most of its products to recurring plans that now account for the bulk of its revenue.
The case also shines a light on subscription practices that some may describe as “dark patterns,” where companies design digital experiences that make it easy to enroll but difficult to leave. Officials say enforcement actions like this one are intended to push companies toward clearer disclosures and simpler cancellation options.
Trying to cancel my adobe plan. @adobe employ some disgusting dark UI patterns. There is no way to cancel from their admin panel.
— Will McGugan (@willmcgugan) May 7, 2025
So you have to go through a chat bot to get to a real (I assume) person, who is clearly being as obstructionist as possible. pic.twitter.com/zWyGyw8ruy
Customers eligible under the settlement are expected to receive free Adobe services once distribution details are finalized.
[via The New York Times, Ars Technica, Reuters, cover image © Chris Dorney | Dreamstime.com]
