The U.S. Department of Justice has filed a proposed order to resolve allegations against Adobe and two of its executives related to its subscription practices. Under the agreement, Adobe will pay $75 million in civil penalties and provide an additional $75 million in free services to customers, bringing the total settlement value to $150 million. The case centers on alleged violations of the Restore Online Shoppers’ Confidence Act (ROSCA), which requires clear disclosure of subscription terms and simple cancellation processes.
The government alleged that Adobe used fine print and less visible links to conceal key details, including early termination fees, and made it difficult for users to cancel subscriptions through lengthy and complex procedures. The case was filed in the U.S. District Court for the Northern District of California.
Officials emphasized the need for fair and transparent practices in online subscriptions. Assistant Attorney General Brett A. Shumate said, “American consumers deserve the right to make informed choices when deciding where to spend their hard-earned money,” adding that the department would oppose deceptive business conduct. U.S. Attorney Craig H. Missakian stated, “Consumers should not have to navigate a digital maze to cancel a subscription.”
As part of the order, Adobe must clearly disclose any early termination fees, notify users before free trials convert into paid plans, and provide straightforward cancellation options. The U.S. is represented by attorneys from the Justice Department’s Civil Division, with support from the Federal Trade Commission.
