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

Apple Shopping Event 2025

Apple Announces 2025 Black Friday Event, Here's What You Can Get

Thursday November 20, 2025 6:28 am PST by
Apple's annual four-day Black Friday through Cyber Monday shopping event is returning on Friday, November 28 through Monday, December 1 in many countries, including the United States, Canada, Australia, New Zealand, France, Germany, Italy, Spain, the United Kingdom, Belgium, the Netherlands, Sweden, Thailand, and others. During the shopping event, customers can get an Apple gift card with...
iOS 26

Everything New in iOS 26.2 Beta 3

Monday November 17, 2025 3:20 pm PST by
Apple provided developers with the third beta of an upcoming iOS 26.2 update, and there are still new features that are being added with each beta that we get. We've rounded up all of the changes that Apple made in beta 3. AirDrop Apple added new AirDrop functionality, providing a way for two people to share files temporarily without having to add one another as contacts. iOS 26.2...
applecare apple care banner

Apple Brings New AppleCare+ Options to India

Tuesday November 18, 2025 8:42 am PST by
Apple today announced an expansion of AppleCare+ coverage in India, with new options for monthly and annual plans, and the addition of Theft and Loss for iPhone for the first time. Options for monthly and annual AppleCare+ plans in India provide more choice and flexibility, allowing users to keep coverage for as long as they require. Apple's vice president of Worldwide iPhone Product...
iPhone 17 Pro Cosmic Orange

10 Reasons to Wait for Next Year's iPhone 18 Pro

Wednesday November 19, 2025 4:00 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
Apple Wallet ID Illinois

iPhone Driver's License Feature Launching in Illinois

Tuesday November 18, 2025 8:47 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Starting this Wednesday, November 19, the feature will be available to residents of Illinois. The announcement confirmed that the...
ipad mini 7 feature red and blue

iPad Mini 8: Four Major New Features to Expect

Wednesday November 19, 2025 7:50 am PST by
Apple's eighth-generation iPad mini is highly likely to arrive next year, offering a significant refresh of the device with at least four major new features. OLED Display The next-generation version of the iPad mini could feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple Watch in 2015, ...
iPhone 17 Pro and Air N1 Feature

iPhone 17 vs. iPhone 16 Wi-Fi Speeds: New Study Reveals the Winner

Tuesday November 18, 2025 10:53 am PST by
A new study has revealed that the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air achieve significantly faster average Wi-Fi speeds compared to the iPhone 16 series, thanks to Apple's custom-designed N1 chip. The study was conducted by Ookla, the company behind the popular Speedtest website and app. It said the results are based on global, crowdsourced Speedtest user data...
macbook black friday

The Best Early Black Friday Mac Deals

Tuesday November 18, 2025 7:32 am PST by
We're getting closer to Black Friday, which lands next week on Friday, November 28. In the lead-up to the shopping holiday, we're tracking a few lowest-ever prices on Apple's most popular Macs, including the M4 MacBook Air and brand new M5 MacBook Pro. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment,...
best early black friday deals

Best Black Friday Apple Deals Live Now - Save on AirPods, iPads, and Apple Watches

Saturday November 15, 2025 1:45 pm PST by
We're officially in the month of Black Friday, which will take place on Friday, November 28 in 2025. As always, this will be the best time of the year to shop for great deals, including popular Apple products like AirPods, iPad, Apple Watch, and more. In this article, the majority of the discounts will be found on Amazon. Note: MacRumors is an affiliate partner with some of these vendors. When ...
Magic Keyboard Touch ID Feature

Apple Releases New Firmware for 140W USB-C Power Adapter, Magic Keyboard and Magic Trackpad

Tuesday November 18, 2025 1:05 pm PST by
Apple today released updated firmware for several accessories, including the 140W USB-C Power Adapter, the Magic Trackpad 2, the Magic Trackpad USB-C, the Magic Keyboard with Touch ID, and the Magic Keyboard with Touch ID and Numeric Keypad. There is no word on what's included in the updated firmware at this time, but it could offer performance improvements and security updates. Accessory...

Top Rated Comments

Lord of the Pies Avatar
19 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
19 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
19 months ago
Good hopefully it teaches Adobe .
Score: 40 Votes (Like | Disagree)
J.Dillinger Avatar
19 months ago
May as well go after Comcast next and keep this train rolling.
Score: 39 Votes (Like | Disagree)
ghanwani Avatar
19 months ago
The settlement will be less than their profits from the hidden fee.
Score: 36 Votes (Like | Disagree)
breenmask Avatar
19 months ago
adobe is less relevant today, thankfully.
Score: 34 Votes (Like | Disagree)