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A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Adobe was sued by the U.S. government in June 2024 over allegations that it obscured early-termination fees and made subscriptions difficult to cancel. On March 13, 2026, the Justice Department announced that Adobe had agreed to a proposed $150 million settlement and injunction.
The settlement does not automatically mean every customer receives cash, and it does not eliminate every Adobe cancellation fee. It calls for clearer disclosures, easier cancellation and $75 million in Adobe services for customers, alongside $75 million in civil penalties.
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What the Adobe lawsuit was about
The U.S. Department of Justice filed its complaint on June 17, 2024, after an investigation and referral by the Federal Trade Commission. The government sued Adobe Inc. and two executives under the Restore Online Shoppers’ Confidence Act, or ROSCA.
The case concerned two related parts of Adobe’s subscription process:
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- Enrollment: The government alleged that Adobe promoted or defaulted some customers into an “annual plan, paid monthly” while emphasizing the monthly price and allegedly making the one-year commitment and early-termination fee less prominent.
- Cancellation: The government alleged that Adobe’s cancellation process used extra steps, delays, retention offers and warnings that made it harder to cancel than to sign up.
The complaint also alleged that some free-trial customers were converted to paid plans without an adequate warning that the resulting plan could include an early cancellation charge. These were government allegations, not a criminal conviction or a judicial finding that Adobe was guilty.
Adobe disputed the allegations. The company said its annual paid-monthly plan clearly reflected a discounted annual commitment and maintained that customers could cancel online, by phone or through chat. Adobe’s positions are described in its response to the original complaint and its response to the updated complaint.
What happened to the case?
The case is no longer simply a pending 2024 lawsuit. On March 13, 2026, the DOJ announced that Adobe agreed to a proposed stipulated settlement and injunction. The announcement describes a resolution of the government’s allegations; it does not say that Adobe admitted liability.
The FTC’s case page provides the official timeline and status materials. Readers should check the final court order and official notices for the final legal status and any consumer-claims procedures.
The key distinction: monthly payments versus month-to-month
“Paid monthly” does not necessarily mean “month-to-month.” Adobe’s U.S. individual plans can differ as follows:
| Plan type | How it works | Cancellation consideration |
|---|---|---|
| Month-to-month | You pay each month without a one-year commitment. | Usually offers more flexibility, often at a higher monthly price. |
| Annual, paid monthly | You make monthly payments but commit to a one-year term. | Ending the commitment early may trigger a fee. |
| Annual, prepaid | You pay for the year in advance. | Refund and cancellation rules differ from monthly-payment plans. |
Adobe’s current U.S. subscription terms, last updated January 27, 2026, say that an annual paid-monthly plan may carry an early-termination fee equal to 50% of the remaining contract balance after the first 14 days.
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For example, if three months remain and those payments total $240, a 50% fee would be $120. The actual amount depends on the account’s plan, promotional terms, price, billing date and remaining commitment.
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What Adobe agreed to change
According to the DOJ, the injunction requires Adobe to:
- Clearly disclose any early-termination fee before enrollment and explain how the fee is calculated.
- Remind customers before a free trial converts to a paid subscription when the resulting subscription carries an early-termination fee and the trial lasts longer than seven days.
- Provide easy ways for subscribers to cancel.
These requirements concern disclosure and cancellation. They do not, by themselves, eliminate the annual paid-monthly plan or every early-termination fee. Adobe’s current U.S. terms still describe a 50% fee for certain annual paid-monthly subscriptions after the initial 14-day period.
Will Adobe customers receive money?
The settlement is described as worth $150 million, but it is not a universal $150 million customer payout:
- $75 million: Civil penalties.
- $75 million: Adobe services for customers.
The DOJ announcement describes the second amount as services, not automatic cash refunds. It does not establish that every current or former subscriber receives $75, a refund or a free year.
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How to check your Adobe plan before canceling
- Sign in to the Adobe account that owns the subscription.
- Open the account’s plan or subscription details.
- Identify the exact plan type, including whether it is annual paid monthly, annual prepaid or month-to-month.
- Review the displayed cancellation fee and remaining commitment.
- Save screenshots of the plan name, advertised price and cancellation-fee screen.
- Complete the process until Adobe displays a cancellation confirmation.
- Save the confirmation email, reference number and any support transcript.
- Check the next card or bank statement.
- Move or export cloud files if cancellation will reduce your available storage.
Adobe’s interface can change, so account labels may not look identical for every subscriber. Use Adobe’s current account-help documentation rather than assuming a particular menu path applies to every account.
When each plan type may make sense
An annual paid-monthly plan may suit someone who expects to use Adobe for most or all of the year, understands the commitment and values the lower effective monthly price. A month-to-month plan may be preferable for a short project, one-off class, uncertain workload or temporary client engagement where flexibility matters more than the discount.
Before choosing, compare the total expected cost, renewal price, cancellation exposure, cloud-storage dependence and the cost of migrating files or workflows later. Promotional pricing may expire, and changing plans is not necessarily the same as canceling.
Important exceptions
The cited cancellation terms apply specifically to U.S.-based individual subscribers. Do not automatically apply them to:
- Teams, enterprise, education or government accounts.
- Subscriptions purchased through Apple, Google, Microsoft or another reseller.
- Non-U.S. subscribers.
- Partner bundles or specially negotiated promotional plans.
App-store subscriptions generally follow the platform’s billing and cancellation process. Deleting an Adobe application does not cancel billing, and a failed payment does not necessarily terminate a subscription. Depending on the plan, cancellation may end access immediately or at the end of a billing or contract period.
Cloud storage also matters. Adobe’s current U.S. terms say that users over the 5 GB limit have 30 days to move files after cancellation.
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If cancellation does not work
The cancellation option is missing
Confirm that you are signed into the account that owns the subscription. Check whether Apple, Google or another partner handles billing. Then use Adobe’s official support channel, recording the date, time, case number and screenshots. Removing a payment card or uninstalling the software is not a substitute for cancellation.
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Compare the plan name with the original confirmation email. Ask Adobe to identify the contract term and explain the calculation in writing. Preserve the enrollment screen, terms, cancellation screen and support records. If the charge appears inconsistent with the displayed terms, you can consider contacting the FTC, your state attorney general or the relevant payment provider. A chargeback is not automatically guaranteed and can have account consequences.
You were charged after trying to cancel
First confirm whether cancellation actually completed and look for a confirmation email. Contact Adobe promptly, request a reversal and provide your evidence. Consider a payment dispute only after reviewing your card issuer’s rules and the possible effect on your Adobe account.
The bottom line for subscribers
The government alleged that Adobe obscured annual commitments and early-termination fees and made cancellation unnecessarily difficult. Adobe denied wrongdoing, and the allegations were resolved through the announced 2026 settlement rather than a finding that Adobe was guilty.
The practical change is greater emphasis on upfront fee disclosures, free-trial reminders and easier cancellation. The settlement does not mean every customer receives cash, does not establish a universal refund, and does not necessarily remove the fee attached to an annual paid-monthly plan. Before signing up or canceling, identify the exact plan, read the commitment terms and save proof of what Adobe showed you.
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