WASHINGTON: Adobe has agreed to a $150 million settlement to resolve a lawsuit brought by U.S. authorities over alleged unfair subscription practices. The lawsuit alleges that the company made it difficult for customers to cancel their services and hid cancellation fees associated with long-term subscription plans. Regulators claimed that many users were not clearly informed about early cancellation penalties when signing up for popular Adobe products.

The settlement ends accusations that consumers were misled about cancellation terms for services such as Adobe Photoshop and Adobe Acrobat subscriptions. Officials said the deal would require clearer disclosures, more transparency in subscription contracts and easier cancellation options for customers who want to cancel their plans.

Officials said the case highlights growing concerns about the subscription-based business models employed by many technology companies. Consumer protection agencies are increasingly ensuring that digital service providers clearly explain their pricing structures and cancellation policies to help users make informed decisions.

Following the settlement, Adobe said it remains committed to improving the customer experience and maintaining transparency in its services. Industry analysts say the incident could cause other software companies to reconsider their subscription policies to avoid similar legal issues in the future.