Adobe has now chosen to settle the lawsuit filed by United States regulators, centering on the difficult processes that users had to go through to cancel subscriptions.
Adobe Settles: US Users Get Free Services Worth $75M
Adobe explained in their latest statement that they have chosen to settle the lawsuit that was filed against them by United States regulators for their hard-to-cancel subscriptions.
The company revealed that they are now agreeing to settle for $150 million, with $75 million of this to be made to the US government in civil penalties. $75 million will be returned to the public in the form of free services.
"We have agreed to provide $75 million worth of services for free to customers who qualify. We will proactively reach out to the affected customers once the appropriate filings with the Court are made and accepted," said the company.
Not all users will get the free services from Adobe as only those who were affected by the company's actions will benefit as part of their settlement agreement.
That said, the company did not reveal what kind of services affected users would receive once the settlement is finalized.
Adobe's Subscription Cancelation Fiasco
In 2024, the US government filed a lawsuit against Adobe for its deceptive subscription terms that made it hard for customers to cancel.
Regulators said that Adobe's practices violated the Restore Online Shoppers' Confidence Act (ROSCA) for failing to clearly disclose subscription terms.
The lawsuit centered on Adobe's hard-to-cancel subscriptions that take users to many forms of messaging that urge them to stay.
Moreover, there is also the deceptive "annual" subscription that users may pay monthly for lower fees, but it essentially locks them in for an entire year's subscription with a hidden cancellation fee.
This hidden fee worth hundreds of dollars for those who opt out earlier than the annual period.
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