Adobe will pay $75 million for free services in settlement of Justice Department opt-out case

Adobe has reached an agreement with the US Department of Justice to settle a government case alleging that the creative software giant intentionally made it difficult to cancel its services in violation of consumer protection laws.

The Department of Justice filed its case against Adobe Again in 2024 Following a recommendation from the Federal Trade Commission. Adobe “harmed consumers by enrolling them in the most profitable default subscription plan without clearly disclosing important plan terms,” ​​the Justice Department’s initial filing said. The case involved complaints from Adobe customers who said they faced hidden cancellation fees and had their phone calls dropped or diverted endlessly when trying to cancel their subscriptions.

Adobe agreed to pay $75 million to the Department of Justice and an additional $75 million in free service to its customers.

“The Department of Justice will strongly oppose any attempt to harm Americans through deceptive and unfair business practices,” Assistant Attorney General Brett Shumate said in a statement. Statement of the Ministry of Justice.

Adobe declined to answer specific questions about how it handled the settlement payment process, saying in… General statement The company will “proactively” reach out to customers after legal filings are completed, it said. “While we disagree with the government’s allegations and deny any wrongdoing, we are pleased to resolve this matter,” she added.

This news comes a day after Shantanu Narain announced that he would do so be resigning As CEO after 18 years in the role once his successor is named. Narain will retain his place on the Adobe canvas. Adobe shares It dropped briefly In the ad, hours after it was published First quarter results are better than expected.

Over the past few years, Adobe has heavily integrated generative AI into its Photoshop, Lightroom and its other editing software. Its internal AI efforts have produced tools for images, video, and audio in a set of models called Adobe Firefly. However, many artists, designers and illustrators have serious concerns about… Legality, ethics and technical capabilities From artificial intelligence.