Accused of deceptive subscription practices, Adobe reaches a $150 million settlement

For over a decade, Adobe has profoundly transformed its business model by focusing on subscriptions. For many creative professionals, this shift has made it easier to access software like Photoshop or Premiere Pro, with lower monthly payments than a traditional license purchase.

But this approach has also fueled growing frustration among some users, particularly when it comes to canceling their subscription. It is precisely on this ground that the American authorities attacked the publisher…

Annual subscriptions deemed too opaque

In 2024, the DOJ (Department of Justice) and the FTC (Federal Trade Commission) accused Adobe of having deliberately made its subscriptions difficult to understand and cancel, notably with a lack of clarity surrounding the annual commitments paid monthly, and the cancellation fees.

At the heart of the matter is the annual subscription paid monthly, very common at Adobe. On paper, the formula may seem flexible, because it is based on a monthly payment, but in reality, it commits the user for twelve months. In the event of early termination, early termination fees apply, often amounting to 50% of the remaining balance after the initial 14-day period.

US authorities criticized Adobe for not having sufficiently clarified this mechanism at the time of subscription. The complaint also mentioned unnecessarily complex cancellation processes, with multiple steps, requests for justification, and sometimes lengthy exchanges with support. In other words, a set of procedures akin to "dark patterns"—interfaces designed to guide or hinder users in their choices. $150 million to avoid a trial. To settle the matter, in a discreet statement, Adobe finally agreed to a $150 million financial settlement. The company will pay $75 million to the U.S. government and set aside an additional $75 million in free services for affected customers. However, it should be noted that the agreement still needs to be approved by a court, but it already allows the firm to avoid a potentially high-profile public trial. For its part, Adobe continues to deny the accusations and maintains that it has done nothing wrong. The company also asserts that it has made its sign-up and cancellation processes smoother and more transparent in recent years. A symbolic case for the entire sector… Beyond Adobe's case alone, this proceeding illustrates the growing pressure exerted by regulators on digital subscription practices. Deceptive interfaces, hidden fees, and retention mechanisms are now under greater scrutiny, especially when users think they're subscribing to a flexible plan… when in fact they're committing for the long term. Furthermore, the timing is significant, as this development comes at a time when Shantanu Narayen, Adobe's CEO for 18 years and the architect of the shift towards software as a service, is preparing to leave. This sequence of events could mark a turning point for the group's image, but also for how major platforms design their subscriptions…