Adobe is being investigated by the UK’s competition watchdog over ‘trap’ cancellation fees
The UK’s Competition and Markets Authority (CMA) has launched an investigation into Adobe over concerns that the software giant’s subscription cancellation fees may be unfair and that customers aren’t getting clear upfront information about them.
The investigation, announced on Thursday (19 March) focuses on Adobe’s “annual billed monthly” subscription plans for popular creative tools like Photoshop, Illustrator, and Adobe Premiere. These plans lock users into a full-year commitment while allowing monthly payments.
Under the terms in question, customers who cancel more than 14 days after signing up must pay 50% of the remaining annual cost as an early termination fee. Access to the software continues until the end of the current billing period.
The CMA is examining whether these fees are unfair under UK consumer protection laws and whether Adobe provides sufficient, timely disclosure about them during the sign-up process – information that could influence whether consumers choose to subscribe.
“From students to content creators, millions of people rely on digital design tools, and they should feel confident that businesses selling these services play by the rules,” said Emma Cochrane, the CMA’s Executive Director for Consumer Protection.
“Our investigation will consider whether Adobe customers are getting a fair deal and if they have enough information upfront about the cancellation fee.”
The authority can impose fines up to 10% of a company’s global turnover for breaches, secure consumer redress, or close cases without court proceedings if evidence doesn’t support violations.
The £60 billion UK digital design and content creation sector has seen growing scrutiny of subscription models, where “subscription traps”, hidden or hard-to-avoid fees that discourage cancellations, are a common complaint.
Adobe’s practices have drawn regulatory attention elsewhere.
In the US, the company recently agreed to a $150 million settlement with the Department of Justice to resolve similar allegations. Those stemmed from a 2024 lawsuit accusing Adobe of burying early termination fees in fine print or inconspicuous links, complicating cancellations through convoluted processes, and violating the Restore Online Shoppers’ Confidence Act.
