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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsThe federal case over Adobe subscriptions is no longer pending: it ended with a court-approved stipulated order and final judgment on April 10, 2026. The FTC had alleged that Adobe steered customers into annual plans billed monthly, obscured an early termination fee, and made cancellation difficult. The resolution did not amount to Adobe admitting those allegations.
What the FTC alleged about Adobe subscriptions
The FTC’s 2024 complaint focused on enrollment disclosures and cancellation. According to the agency, Adobe’s website promoted an “annual paid monthly” subscription and preselected it as the default. The FTC alleged that the signup flow made the monthly price prominent while making the annual commitment and its early termination fee less visible. These are allegations in the complaint, not findings that a court made about every claim. FTC complaint summary and press release
The annual commitment and alleged fee
The FTC described the first-year early termination fee as 50 percent of the remaining monthly payments. In the agency’s account, a customer who cancelled during the first year could therefore owe a fee calculated from payments still due under the annual commitment. That figure describes the plan terms alleged in this case; it is not a general rule for subscriptions.
Cancellation obstacles
The FTC also alleged that online cancellation involved multiple pages and friction, and that customers who contacted support faced delays or transfers. Then-Bureau of Consumer Protection Director Samuel Levine characterized the case this way: “Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles.” That was the agency’s description of its allegations, not a judicial conclusion.
#1 Best Overall
How the case ended
- June 2024: After an FTC referral, the Department of Justice filed a civil penalty case in the U.S. District Court for the Northern District of California. The FTC’s case page gives the original allegations, but its status information was last updated in July 2024 and is not a current account of the outcome.
- May 2, 2025: The court denied the defendants’ motion to dismiss, according to the FTC’s June 2025 litigation report. The trial schedule listed in that report was subsequently overtaken by later developments.
- March 2026: DOJ announced that Adobe had agreed to a proposed $150 million settlement and injunction. The proposed amount should not be mistaken for a statement that consumers individually received that sum.
- April 10, 2026: The court entered a stipulated order for permanent injunction, civil penalty judgment, and other relief. A final judgment entered the same day and closed the case.
The entered order says it resolves the matters in dispute. It also says the defendants neither admit nor deny the complaint’s allegations, except as specified in their answer and the order. The accurate description is that the case ended in a court-approved stipulated order and final judgment—not that Adobe admitted deception or that the court found every allegation true. The order and judgment are reproduced by Justia: court-record documents. DOJ’s announcement describes the proposed resolution: DOJ settlement announcement.
What the case means if you are choosing or cancelling a subscription
The practical distinction at the heart of the allegations is between a flexible month-to-month subscription and an annual commitment collected in monthly installments. A monthly price does not, by itself, mean the subscription can be ended at any time without a fee. Before signing up, check the commitment period, the terms for cancelling early, and what happens when a free trial converts to a paid plan. The FTC’s consumer guidance covers subscription terms, trial conversions, cancellation, and fees: FTC guide to subscriptions and free trials.
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- Look for whether the plan renews monthly or commits you for a year.
- Check whether a stated monthly amount is a recurring monthly contract or installments on an annual plan.
- Read any early-cancellation fee terms before enrollment, including how the fee is calculated.
- Keep confirmation of cancellation and review later statements for continued charges.
What to do if charges continue after cancellation
If you have cancelled and believe charges are unauthorized, the FTC advises contacting your credit or debit card issuer to dispute them and reporting the issue at ReportFraud.ftc.gov. This is general consumer guidance; it does not guarantee a refund or determine the outcome of a billing dispute.
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