Adobe Settles US Lawsuit, Offers $75 Million in Free Services to Users
Adobe will settle a US lawsuit for $150 million, providing $75 million in free services to affected users due to difficult subscription cancellations.Summary
Adobe has agreed to settle a lawsuit brought by US regulators concerning its challenging subscription cancellation processes. The settlement totals $150 million, with $75 million going towards civil penalties for the US government and the remaining $75 million being distributed as free services to customers impacted by the deceptive practices. Adobe will proactively contact eligible customers once court filings are approved, though the specific services offered have not yet been disclosed.
The lawsuit, filed in 2024, alleged that Adobe violated the Restore Online Shoppers' Confidence Act (ROSCA) by failing to clearly communicate subscription terms and making cancellation excessively difficult. Regulators pointed to practices like multiple prompts urging users to remain subscribed and a deceptive “annual” subscription option that effectively locked customers into a year-long commitment with substantial cancellation fees.
These hidden fees could amount to hundreds of dollars for those who cancelled before the annual period ended. The settlement aims to address these concerns and provide restitution to affected consumers.
(Source：Techtimes)