Adobe has settled a lawsuit against its early cancellation penalties, agreeing to pay a $75-million fine and provide another $75-million in free services to customers.
US authorities said the software company, which offers its products only on a subscription basis, hid extensive early cancellation fees from subscribers, and made the cancellation process difficult to accomplish.
In a statement, Adobe says it disagrees with the government’s claims, but is happy that the matter has been resolved.
“We are transparent with the terms and conditions of our subscription agreements, have a simple cancellation process and clearly disclose the details of our plans, which we carefully crafted to maximise value and benefits to our customers.
“In recent years, we have made our sign-up and cancellation processes even more streamlined and transparent.
“We have now finalised a settlement agreement with the Department of Justice that will bring to an end the litigation filed in June 2024 related to our disclosure and subscription cancellation practices.”
In separate news, Adobe’s CEO Shantanu Narayen, who has served as CEO of Adobe for eighteen years, will resign from his position once a successor has been appointed.
Narayen will remain as chair of the board.