Adobe Pays Early Termination Fee, or ‘Settlement’, in U.S. Lawsuit Over Hidden Fees ⇥ pcmag.com

When the United States Federal Trade Commission and Department of Justice jointly filed a lawsuit in 2024 against Adobe, I commented on the similarities between that complaint and the one against Amazon. Both are about the ease of entering into subscriptions that are later difficult or expensive to leave, both had alleged personal liability by executives — and, now, both have been settled out of court.

Michael Kan, PC Magazine:

Adobe has settled a 2024 lawsuit from the US government that alleged the company used hidden fees to trap users into paying for subscriptions.

On Friday, Adobe “finalized” an agreement with the Justice Department, which accused the software vendor of failing to inform new customers about payment terms or early termination fees. “While we disagree with the government’s claims and deny any wrongdoing, we are pleased to resolve this matter,” Adobe says.

I am sure Adobe has learned its lesson. Let us go and check its work. In its statement, Adobe says it has “made [its] sign-up and cancellation processes even more streamlined and transparent”. Here is how it describes its annual pricing, billed monthly, on its U.S. website:

Fee applies of half your remaining annual commitment if you cancel after Mar 31.

This is not the most direct sentence, but it is an accurate explanation of how much the fee will be, and when that fee takes effect — fourteen days from when I am writing this. It is followed by a little “i” informational icon. Clicking on it will display a callout noting when service will be cut off. For comparison, here is the equivalent disclaimer on its Canadian site:

Fee applies if you cancel after 14 days.

Here, too, there is a little informational icon. When you hover over it, Adobe says the same thing about cancellation, and adds that cancelling will incur an early termination fee. It is the same on the U.K. site.

What is the answer here? Does each country need to sue Adobe for its billing flow to disclose a reasonable amount of information?