Adobe agrees to $150 million settlement over hidden cancellation fees
Latest news on WhatsApp أجدد الأخبار على واتسابAdobe has agreed to a $150 million settlement to resolve a lawsuit filed by the U.S. government over subscription practices that regulators said harmed consumers, after the company was accused of hiding costly termination fees and making some subscription cancellations unnecessarily difficult.
The settlement, which still requires court approval, includes a $75 million civil penalty and $75 million in free services.
The U.S. Department of Justice and the Federal Trade Commission said Adobe concealed early termination fees — sometimes reaching hundreds of dollars — in places where consumers were unlikely to notice them. Regulators also said the company made cancelling subscriptions more complicated for some users, both online and by phone.
According to the lawsuit, these practices violated the Restore Online Shoppers’ Confidence Act, a U.S. law that requires companies to clearly disclose charges and obtain consumer consent before imposing fees.
The case highlights a broader consumer issue often described as a “subscription trap,” where a plan appears to be a simple monthly offer but later reveals an annual commitment, significant cancellation charges, or a complicated cancellation process.
Adobe denied wrongdoing but said it has improved transparency in its subscription and cancellation practices. The settlement also resolves claims brought against two Adobe executives.
Consumer protection experts say the case reflects growing regulatory scrutiny of hidden fees and confusing cancellation processes in the digital subscription economy.
