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Adobe Settles Federal Lawsuit for $150M Over Hidden Cancellation Fees

Friday, March 13, 2026 at 9:21 AM

Software giant Adobe has agreed to pay $150 million total to settle a federal lawsuit over hidden subscription cancellation fees. The company will pay $75 million to the government and provide another $75 million in free services to affected customers.

Software company Adobe announced Friday it has reached a $150 million settlement with federal authorities over allegations the company misled customers about expensive cancellation charges and made it challenging for users to end their subscriptions.

The maker of popular software including Photoshop and Acrobat will pay $75 million directly to the U.S. government to settle the federal lawsuit. Additionally, Adobe has committed to providing another $75 million worth of complimentary services to eligible customers affected by the disputed practices.

The legal action centered on claims that Adobe failed to properly disclose significant early termination penalties associated with its widely-used subscription services, while simultaneously creating barriers that made it difficult for consumers to cancel their accounts.

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