Overview
- Under a proposed order filed in federal court, Adobe would pay a $75 million civil penalty and provide $75 million in free services to customers.
- The order would require clear, upfront disclosure of any early termination fee and its calculation, reminders before free trials longer than seven days convert, and easier cancellation options.
- The filing names Adobe and two executives, Maninder Sawhney and David Wadhwani; Adobe denies wrongdoing, says it has already streamlined sign-up and cancellation flows, and plans to notify eligible customers once filings are finalized.
- The case traces to a June 2024 FTC–DOJ complaint alleging Adobe hid key terms in fine print or behind hyperlinks and used convoluted steps, delays and retention pitches to deter cancellations.
- The regulatory development arrives as CEO Shantanu Narayen plans to step down while remaining board chair until a successor is chosen, with shares weakening despite a Q1 revenue and EPS beat and at least one analyst cutting its price target.