Overview
- Adobe will pay $75 million in civil penalties and provide $75 million in free services to affected customers, pending court approval.
- The DOJ and FTC alleged Adobe hid hefty early termination fees in fine print and used obstructive cancellation flows in violation of ROSCA.
- Injunctive terms would mandate plain disclosure of any Early Termination Fee and its calculation, reminders before trials over seven days convert, and simple ways to cancel.
- Adobe denies wrongdoing, says it has already streamlined sign‑up and cancellation processes, and frames the agreement as a resolution to the 2024 case.
- Adobe shares fell nearly 8% following the settlement announcement, reflecting market concern over the company’s subscription practices.