U.S. Government Sues Adobe for Hidden Termination Fees When Canceling Subscription

The United States Department of Justice and the Federal Trade Commission today levied a lawsuit against Adobe [PDF] for imposing a hidden termination fee on subscribers who want to cancel their Adobe plans. Adobe is accused of forcing subscribers to "navigate a complex and challenging cancellation process designed to deter them from cancelling subscriptions they no longer wanted."

adobe creative cloud purple
Adobe offers its Creative Cloud products on a subscription basis, with fees that are paid monthly. A monthly payment suggests that it's possible to cancel anytime, but that's not how Adobe works because most customers are actually locked into a hidden annual agreement.

Customers who sign up for a free trial and are then charged and signed up to the default Creative Cloud plan, which is actually an annual contract. Canceling the annual contract requires customers to pay a lump sum of 50 percent of the "remaining contractual obligation" to cancel, despite the fact that service ends that month.

Adobe does let customers sign up for a month-to-month subscription plan, but at a higher cost than the annual contract that's paid monthly, and the difference is not always clear to new or existing customers. Adobe even has a whole help page because of the confusing nature of its subscription. If you look at the Adobe website, for example, Adobe lists a $60/month fee for accessing its full suite of apps, but that's only if you agree to the annual contract. A true month-to-month plan that you can cancel anytime is $90/month, and if you pay for a year upfront, you get no money back when you cancel after a 14-day period.

According to the DoJ, Adobe's setup violates the Restore Online Shoppers' Confidence Act (ROSCA) through the use of fine print and inconspicuous hyperlinks to hide information about the Early Termination Fee.

The complaint alleges that for years, Adobe has profited from this hidden fee, misleading consumers about the true costs of a subscription and ambushing them with the fee when they try to cancel, wielding the fee as a powerful retention tool.

The complaint alleges that Adobe has further violated ROSCA by failing to provide consumers with a simple mechanism to cancel their recurring, online subscriptions. Instead, Adobe allegedly protects its subscription revenues by thwarting subscribers' attempts to cancel, subjecting them to a convoluted and inefficient cancellation process filled with unnecessary steps, delays, unsolicited offers and warnings.

The lawsuit asks for "unspecified amounts of consumer redress" along with monetary civil penalties and a permanent injunction that would prevent Adobe from continuing to use hidden fees to thwart customer cancelations.

Tags: Adobe, DOJ, FTC

Popular Stories

ios 18 4 carplay

Apple Upgrades CarPlay in Two Ways

Wednesday March 12, 2025 6:05 am PDT by
The upcoming iOS 18.4 update for the iPhone includes a smaller but meaningful improvement for Apple's in-car iPhone mirroring system CarPlay. Specifically, CarPlay now shows a third row of icons, up from two rows previously. However, this change is only visible in vehicles with a larger center display. For example, a MacRumors Forums member noticed the change in a Toyota Tundra with a...
Apple More Personal Siri Ad

John Gruber Says 'Something is Rotten' at Apple

Wednesday March 12, 2025 7:39 pm PDT by
Daring Fireball's John Gruber today shared some strongly-worded comments about Apple's delayed personalized Siri features. Gruber is a well-known Apple pundit who has been writing about the company for more than two decades. In a blog post titled "Something Is Rotten in the State of Cupertino," Gruber said Apple's credibility has been "damaged" by the delay:Keynote by keynote, product by...
airpods pro 2 gradient

AirPods Pro 3 Launch Now Just Months Away: Here's What We Know

Tuesday March 11, 2025 3:26 am PDT by
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for. Apart from their audio and noise-canceling performance, which are generally regarded as excellent for...
Apple Maps vs Google Maps Feature

iOS 18.4 Adds a Highly-Requested Setting to iPhones — But Not in U.S.

Wednesday March 12, 2025 1:05 pm PDT by
iPhones are finally getting a much-requested setting, but availability is limited. The upcoming iOS 18.4 update introduces an option to set a default navigation app, other than Apple Maps, but unfortunately this new setting is limited to users in the EU. There, you can now set an app like Google Maps or Waze as your default navigation app on the iPhone by opening the Settings app and tapping ...
Generic iOS 19 Feature Mock Light

iOS 19 Will Bring Biggest Design Overhaul Since iOS 7

Monday March 10, 2025 12:17 pm PDT by
Apple is planning for a major design overhaul of the iPhone, iPad, and Mac interfaces with the introduction of iOS 19, iPadOS 19, and macOS 16 later this year, reports Bloomberg. The update will "fundamentally change" the look of Apple's operating system, introducing a more consistent cross-platform experience. Apple plans to update the style of icons, menus, apps, windows, and system...
iPhone 17 Pro Render Front Page Tech

iPhone 17 Pro Machined Parts Leak Reflects Camera Redesign Rumors

Thursday March 13, 2025 3:07 am PDT by
Apple's upcoming iPhone 17 Pro models are expected to feature a significant design overhaul, and a new image apparently taken on an assembly line for the unreleased devices appears to confirm the biggest rumored change. Render of an iPhone 17 Pro model shared by Jon Prosser The iPhone 17 Pro and iPhone 17 Pro Max are rumored to adopt a horizontal camera bar reminiscent of Google's Pixel...
Sad Siri Feature

Kuo: Apple Knows Apple Intelligence is 'Underwhelming' and Won't Drive iPhone Upgrades

Thursday March 13, 2025 9:32 am PDT by
The Apple Intelligence features that Apple introduced with iOS 18 are not pushing people to upgrade their iPhones, Apple analyst Ming-Chi Kuo reiterated today. Apple's recent Siri failures are also going to have an impact on 2025 iPhone shipments, which the market is beginning to realize. As early as last July, Kuo said expectations that Apple Intelligence could drive iPhone upgrades were...
iOS 18

12 New Things Your iPhone Can Do in iOS 18.4

Monday March 10, 2025 9:28 am PDT by
Apple is set to release iOS 18.4 in early April, bringing further refinements to Apple Intelligence features, a neat new capability to iPhone 15 Pro devices, new emoji, and more. While not quite as packed with new features as Apple's preceding iOS 18 point releases, iOS 18.4 still introduces enhancements that aim to make your iPhone smarter and more intuitive. Below, we've listed 12 new...
iphone 17 pro asherdipps

iPhone 17 Pro Max Rumors Allegedly Refer to 'iPhone 17 Ultra' Model

Friday March 14, 2025 7:56 am PDT by
If you've been following iPhone rumors over the last few years, you may remember reading reports that Apple flirted with the idea of introducing a super high-end "Ultra" model that would either replace its Pro Max device or sit above it in Apple's smartphone hirearchy. These reports appeared in the pre-launch iPhone 15 and iPhone 16 rumor cycles, but ultimately came to nothing. Now though, the...

Top Rated Comments

Lord of the Pies Avatar
10 months ago
Cancelling my Creative Cloud subscription a few months ago was complete insanity. I got the impression that it must be hell to work in that call centre. Ordinarily I'd be pretty irritated at an agent being overly persistent in trying to get me to stay subscribed, but quite quickly I just felt sorry for the guy. It was a weird sort of desperation, like failing to salvage a cancellation attempt reflects extremely poorly on them.

Switched to Affinity Photo and Designer, and haven't looked back. I find Photo a lot more user friendly, and imo, Inpainting knocks the socks off Content Aware.
Score: 49 Votes (Like | Disagree)
now i see it Avatar
10 months ago
I used to live inside Adobe apps. But then when they switched to subscription — I never used any of their apps ever again. Bye bye.
With creative cloud, Adobe owns your images/files forever. You can’t open them unless you’ve paid for an outrageous annual subscription.
Score: 47 Votes (Like | Disagree)
tridley68 Avatar
10 months ago
Good hopefully it teaches Adobe .
Score: 40 Votes (Like | Disagree)
J.Dillinger Avatar
10 months ago
May as well go after Comcast next and keep this train rolling.
Score: 39 Votes (Like | Disagree)
ghanwani Avatar
10 months ago
The settlement will be less than their profits from the hidden fee.
Score: 36 Votes (Like | Disagree)
breenmask Avatar
10 months ago
adobe is less relevant today, thankfully.
Score: 34 Votes (Like | Disagree)