SAN FRANCISCO – Adobe has agreed to a $150 million settlement with the U.S. Department of Justice to resolve allegations that its subscription practices violated the Restore Online Shoppers’ Confidence Act (ROSCA). The agreement, announced Friday, March 13, 2026, requires Adobe to pay $75 million in civil penalties and offer $75 million in free services to affected customers. This marks a significant outcome in the government’s effort to protect consumers from deceptive subscription practices, particularly concerning hidden fees and difficult cancellation processes.
The Justice Department’s complaint, filed in the U.S. District Court for the Northern District of California, alleged that Adobe obscured key information about its subscription plans, including substantial Early Termination Fees, through fine print and inconspicuous hyperlinks. The government contended that Adobe intentionally made it challenging for subscribers to cancel their subscriptions, subjecting them to lengthy and frustrating procedures filled with unnecessary steps, delays, and unsolicited offers. The case highlights a growing concern over “dark patterns” in online subscriptions, where companies design interfaces to manipulate users into unintended actions.
Adobe’s Subscription Model and the DOJ’s Concerns
Adobe’s transition to a subscription-based model for its Creative Cloud suite of software – including industry-standard tools like Photoshop and Illustrator – began in 2013. Even as the company argues this shift was intended to produce its technology more accessible and foster continuous innovation through regular updates and cloud-based features, the DOJ alleges that the implementation of this model was deceptive. The move away from perpetual licenses, which previously cost users hundreds to thousands of dollars upfront for a single version of the software, to monthly subscription fees ranging from $10 to $70, initially appeared more affordable. However, the government’s investigation revealed practices that undermined the transparency of these subscriptions.
A core issue identified by the DOJ was Adobe’s practice of hiding cancellation fees. Customers were often unaware of the 50 percent termination fee applied to the remaining subscription term, which could amount to hundreds of dollars, particularly for annual plans. This information was allegedly buried in the fine print or concealed behind difficult-to-find hyperlinks. Adding to the frustration, subscribers attempting to cancel faced complex and time-consuming processes, including navigating labyrinthine phone trees and enduring lengthy hold times. The Department of Justice press release details these allegations.
The Restore Online Shoppers’ Confidence Act (ROSCA)
The case hinges on violations of the Restore Online Shoppers’ Confidence Act (ROSCA), a law designed to protect consumers from deceptive online subscription practices. ROSCA mandates that companies offering online subscriptions clearly disclose important subscription information and provide subscribers with simple and straightforward methods for cancellation. The DOJ’s action against Adobe underscores the government’s commitment to enforcing ROSCA and holding companies accountable for practices that exploit consumers. The Act aims to prevent businesses from trapping customers in unwanted subscriptions through misleading tactics and difficult-to-navigate cancellation procedures.
Adobe’s Response and the Terms of the Settlement
While Adobe disputes the government’s claims and denies any wrongdoing, the company has agreed to the settlement to resolve the matter. In a statement released on March 13, 2026, Adobe stated it is “pleased to resolve this matter” and will provide $75 million worth of free services to qualifying customers. Adobe’s official statement emphasizes its commitment to delivering flexible offerings and transparent terms and conditions. The company also asserts that it has streamlined its sign-up and cancellation processes in recent years.
Beyond the financial penalties and free services, the stipulated order includes strong protections for American consumers going forward. The specific details of these protections were not immediately available, but the DOJ indicated they are designed to prevent similar deceptive practices in the future. The court must approve the proposed stipulated order before it officially takes effect. Once approved, Adobe will proactively reach out to affected customers to inform them about the available free services.
Impact on Consumers and the Tech Industry
This settlement sends a clear message to the tech industry regarding the importance of transparency and fair subscription practices. The case highlights the potential consequences of employing “dark patterns” and prioritizing profit over consumer rights. For Adobe customers, the $75 million in free services represents a significant benefit, although the process for claiming these services remains to be detailed. The settlement also serves as a warning to other companies offering subscription-based services to ensure they are fully compliant with ROSCA and prioritize clear and accessible cancellation procedures.
Assistant Attorney General Brett A. Shumate, head of the Justice Department’s Civil Division, emphasized the importance of protecting consumers from deceptive business practices, stating, “American consumers deserve the right to make informed choices when deciding where to spend their hard-earned money.” The DOJ’s strong stance in this case demonstrates its commitment to vigorously opposing any attempts to harm consumers through unfair or deceptive practices.
What Happens Next?
The next step in this process is for the court to review and approve the proposed stipulated order. Following court approval, Adobe will be required to implement the terms of the settlement, including providing $75 million in free services and adhering to the new consumer protections. The company has indicated it will proactively contact affected customers once the court filings are accepted. The DOJ will continue to monitor Adobe’s compliance with the order to ensure that the company is upholding its commitments to consumers. CNET’s coverage provides additional details on the timeline and potential impact of the settlement.
This case comes amidst broader scrutiny of Adobe, with Shantanu Narayen recently announcing his planned departure as CEO after 18 years in the role. While the timing is notable, the DOJ settlement appears to be a separate matter, focused specifically on subscription practices. Adobe’s continued integration of artificial intelligence into its products, including its Adobe Firefly suite, remains a key area of focus for the company as it navigates this leadership transition.
The Adobe settlement is a landmark case in the ongoing effort to protect consumers in the digital age. It underscores the importance of clear and transparent subscription practices and serves as a warning to companies that engage in deceptive tactics. Consumers are encouraged to report any concerns about deceptive subscription practices to the Federal Trade Commission and the Department of Justice.
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