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The Adobe Settlement: What Happened
Facts checked October 2026
Why we're here
In June 2024, the United States Department of Justice and the Federal Trade Commission sued Adobe. The case was brought under the Restore Online Shoppers' Confidence Act. The government said Adobe hid its early termination fee — 50% of the remaining payments on annual plans paid monthly — and made cancellation hard to find and hard to complete.
On March 13, 2026, Adobe settled the case for $150 million: $75 million in civil penalties and $75 million in free services. The settlement requires clearer fee disclosures and simpler cancellation. Adobe denied wrongdoing.
What it means for you
If you pay for an annual plan by the month, read the terms before you sign up, and again before you cancel. The fee at issue was half of whatever payments remained on the annual plan. Clearer disclosures should make that figure easier to find than it was, and cancellation should be simpler to complete than the process the case described.
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