Adobe's $150M settlement over hard-to-cancel subscriptions, with free services for users

Adobe has agreed to a $150 million settlement with U.S. regulators over subscription practices deemed hard to cancel, with $75 million in civil penalties and $75 million worth of free services for affected customers. Regulators alleged that Adobe hid early termination fees and forced a complex cancellation process in its “annual paid monthly” plans, violating the Restore Online Shoppers’ Confidence Act. The settlement requires upfront disclosure of cancellation fees, reminders before free trials convert to paid plans, and simpler cancellation options. Adobe says the settlement closes the case and will notify eligible users about the free services once approved.