Adobe Hit With DOJ Settlement Over Deceptive Practices

Adobe just agreed to pay $150 million to settle a lawsuit brought by the U.S. Department of Justice over its subscription cancellation practices.

The DOJ, acting on a referral from the Federal Trade Commission, alleged that Adobe used fine print and hidden hyperlinks to bury key details about its subscription plans — specifically, an early termination fee that could cost customers hundreds of dollars if they tried to cancel. The government also alleged Adobe made canceling unnecessarily difficult, forcing subscribers through a maze of extra steps, delays, unsolicited offers, and warnings designed to keep them paying.

The practices, often referred to as "dark patterns," were allegedly overseen by two Adobe executives named in the lawsuit: David Wadhwani, president of Adobe's digital media business, and Maninder Sawhney, a company vice president.

At the center of the case was Adobe's most popular pricing tier — the "Annual, Paid Monthly" plan. According to the DOJ, Adobe presented it as the default option during sign-up, showing an attractive monthly price without making it clear that customers were locking into a year-long commitment. When subscribers tried to leave early, they were hit with the termination fee that was allegedly never properly disclosed.

Under the terms of the proposed settlement, Adobe will pay $75 million in civil penalties to the U.S. Treasury and provide an additional $75 million in free services to affected customers. Going forward, Adobe is also required to clearly disclose any early termination fee before enrollment, notify customers before free trials convert to paid plans with termination fees, and provide simple, direct ways to cancel.

Adobe denied any wrongdoing but said it is "pleased to resolve this matter."

Who's eligible and what happens next

The settlement still needs to be finalized by the court. Once it's approved, Adobe says it will proactively reach out to affected customers — meaning you won't need to file a claim through a third-party website. Details on exactly who qualifies and what the free services will look like haven't been announced yet, but early reporting suggests compensation could come in the form of free months of Creative Cloud or refunds for early termination fees. Those details are expected sometime in summer 2026.

It's also worth noting that Adobe still faces a separate class action lawsuit filed by consumers with similar allegations. That case is still pending.

Download ClassyAction to stay updated on this settlement and get notified when Adobe starts reaching out to eligible customers.