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Adobe’s announced $150 million settlement is split between a $75 million civil penalty paid to the U.S. Department of Justice and $75 million in services for eligible customers. It is not a general cash refund for everyone who paid an Adobe cancellation fee. Adobe says qualifying U.S. Creative Cloud customers may receive two free months if they meet specific date and fee requirements.
What the $150 million settlement covers
On March 13, 2026, the U.S. Department of Justice (DOJ) announced that it had filed a proposed stipulated order to resolve its federal case against Adobe and two employees. DOJ described a $150 million package: $75 million in civil penalties and $75 million in services at no cost for eligible customers. Adobe said it had finalized the settlement, agreed to both components, and denied wrongdoing. The announcement described a proposed order; the court-entry date and operative order were not independently confirmed in the materials available. DOJ’s announcement · Adobe’s statement
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The $75 million penalty is payable to DOJ, not a pool of individual cash payments. Adobe describes the customer benefit as two months of service for people who meet its eligibility test. The official materials do not announce a general cash refund to subscribers. Adobe’s settlement FAQ
What regulators alleged—and Adobe’s response
The case grew out of a Federal Trade Commission (FTC) complaint referred to DOJ for civil penalties and filed in the U.S. District Court for the Northern District of California. The FTC alleged that Adobe steered customers toward its “annual paid monthly” subscription, made that plan the default online choice, emphasized the monthly price, and obscured that canceling during the first year could trigger an Early Termination Fee. The FTC described the alleged fee as 50 percent of the remaining monthly payments in that first year. These are allegations in the complaint, not findings established by the settlement announcement. FTC’s 2024 complaint announcement
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The FTC also alleged that cancellation could involve multiple screens and friction in customer-service interactions, including delays, dropped calls or chats, and transfers. DOJ’s 2026 summary said the government alleged that Adobe hid important terms in fine print and inconspicuous links, and that customers trying to cancel encountered unnecessary steps, delays, unsolicited offers, and warnings. DOJ said the Restore Online Shoppers’ Confidence Act (ROSCA) generally requires online-subscription sellers to disclose important information clearly and provide simple cancellation methods. DOJ’s announcement
Adobe disputed the government’s claims and said its subscription model supports ongoing software updates and cloud features. It maintained that its terms and cancellation process were transparent, denied wrongdoing, and said it agreed to the payment and service components to resolve the matter. Adobe’s statement
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Who Adobe says qualifies for two free months
Adobe’s FAQ, last updated April 30, 2026, says the benefit is limited to U.S. customers who meet all of these conditions: Adobe settlement FAQ
- You subscribed to a Creative Cloud app at some point from January 2019 through July 2025.
- You paid an Early Termination Fee.
- Your Early Termination Fee plus the monthly subscription fees you paid exceeded the cost of a month-to-month plan for the same period.
This test is narrower than simply having had an Adobe subscription or having paid a cancellation fee. It compares the customer’s fees and subscription payments with the month-to-month cost for that same period. Adobe says it emailed eligible customers at the address associated with their Adobe account. If you believe you qualify but did not receive an email, check your spam folder and contact Adobe support. Your settlement email, account details, and billing records can help you check the dates and charges against Adobe’s criteria.
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How the benefit works for active and former customers
| Customer type | What Adobe says happens | What to check |
|---|---|---|
| Eligible customer with an active subscription | Two free months are applied automatically to each active subscription. The credit appears under Billing and Payment in the account’s Your Plan section. | Review Your Plan for the credit and the timing of your next bill. |
| Eligible former customer | Two free months of one of the listed Adobe products can be redeemed through a link in the settlement email. Adobe says redemption does not require a credit card or subscription commitment. The offer must be redeemed by December 31, 2027; access ends automatically after two months unless the customer chooses to start a subscription. | Use the link in the settlement email before the deadline and review the product options Adobe lists there. |
Adobe says billing on an active subscription resumes under the existing terms after the two free months. For an upfront annual subscriber, the credit is applied at the next renewal and prorated. The benefit is therefore temporary service access, not a permanent price reduction. Adobe settlement FAQ
What the proposed order would change
DOJ said the proposed stipulated order would require Adobe to disclose any Early Termination Fee and explain how it is calculated before enrolling a customer. For free trials longer than seven days, DOJ said Adobe would have to remind customers before converting them to a paid subscription that includes an Early Termination Fee. DOJ also said Adobe would have to provide easy ways to cancel. These are requirements DOJ announced for the proposed order; the announcement alone does not establish when the court entered it or the exact operative language. DOJ’s announcement
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How to check your Adobe account and records
- Look for Adobe’s settlement email. Search the inbox for the email address associated with your Adobe account, and check spam or junk folders. Adobe says it notified customers it considers eligible.
- Check your plan and billing information. Sign in to your Adobe account and review Billing and Payment under Your Plan for any active-subscription credit.
- Compare the relevant charges. If you are assessing eligibility, gather the Creative Cloud subscription dates, monthly subscription fees, and Early Termination Fee, then compare their total with the month-to-month cost for the same period.
- Ask Adobe if the notice is missing. Adobe advises customers who think they qualify but did not receive an email to contact support. Former customers who received a redemption offer should use its email link by December 31, 2027.
How an annual paid monthly plan differs from month-to-month
The phrase “annual paid monthly” describes a commitment that runs for a year while charges are billed monthly; it is not the same as a month-to-month plan that can be ended without that annual commitment. The FTC’s complaint described an alleged first-year Early Termination Fee of 50 percent of remaining monthly payments for the plan at issue. That figure is the FTC’s account of the allegations, not a statement of Adobe’s current plan terms or a universal cancellation fee. Adobe’s settlement-benefit test uses the cost of a month-to-month plan for the same period as its comparison point. The sources cited here do not establish current plan prices, so check Adobe’s terms before enrolling or canceling.
What this means if you paid an Adobe cancellation fee
Do not assume that a prior fee automatically entitles you to cash or to the service benefit. The announced benefit is for customers who meet Adobe’s U.S., Creative Cloud, date-range, and fee-comparison criteria; the civil penalty is a separate payment to DOJ. If you believe you meet Adobe’s stated test, use the settlement email and account records to verify the details and contact Adobe support about a missing notice. The FTC’s case page is dated July 2024 and still labels the matter “Pending”; it predates DOJ’s March 2026 settlement announcement, so it should not be read as a later update on the settlement’s status. FTC case page
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