Adobe, the software company, has announced a $75 million settlement to resolve a lawsuit filed by the US government. The lawsuit alleged that Adobe made its subscriptions intentionally difficult to cancel and concealed termination fees, harming consumers. This resolution comes after the US Justice Department accused Adobe of violating federal consumer protection laws by not adequately disclosing important terms for its subscription plans and creating a complex cancellation process for Creative Cloud subscribers.
According to the lawsuit, customers faced challenges when trying to cancel their subscriptions and were surprised with early termination fees. Adobe plans to offer $75 million in free services to affected customers in addition to the monetary settlement if the court approves the deal. While Adobe denies any wrongdoing, the company has committed to enhancing transparency regarding subscription terms, plan details, and cancellation procedures.
This development coincides with Adobe CEO Shantanu Narayen’s decision to step down after leading the company for 18 years. Under Narayen’s leadership, Adobe shifted from traditional software licenses to subscription-based models. The outcome of Adobe’s settlement offer will be determined by the court.
Source: The Verge