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- Adobe pays $75 million to settle US lawsuit over termination fees, subscription cancellations
Adobe pays $75 million to settle US lawsuit over termination fees, subscription cancellations
Plus: TIME names ‘Architects of AI’ its Person of the Year
Hafizur Rahman
March 13, 2026
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Today's Newsletter Highlights:
Disney signs deal with OpenAI to allow Sora to generate AI videos featuring its characters
E.SUN Bank and IBM build AI governance framework for banking
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Adobe pays $75 million to settle US lawsuit over termination fees, subscription cancellations
Adobe has agreed to pay $75 million to settle a lawsuit from the U.S. government. The lawsuit said the company tricked customers with hidden fees. It also claimed that cancelling subscriptions was difficult.
Key Points :
What the lawsuit was about
The U.S. Department of Justice and the Federal Trade Commission filed the case in 2024. They claimed that:
Adobe hid early termination fees in the fine print. This is part of its “annual paid monthly” subscription plan.
Customers often found out about cancellation fees only when trying to cancel.
The company made cancelling hard. Users had to visit many pages online or make repeated calls to customer service.
These practices were said to break the Restore Online Shoppers' Confidence Act. This U.S. law requires clear disclosure and consent for recurring charges.
Settlement details
Adobe will pay $75 million to the U.S. government.
It will also offer another $75 million in free services to affected customers.
The settlement still needs court approval.
Adobe denies any wrongdoing but chose to settle the case. The company said it has already made it easier to manage subscription sign-ups and cancellations.
Why this matters
Subscriptions make up about 97% of Adobe’s revenue. This is why regulators care about cancellation policies.
This case is part of a larger push by U.S. regulators to address “dark patterns.” These are design tricks that make starting subscriptions easy but cancelling them hard.
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E.SUN Bank and IBM build AI governance framework for banking
E.SUN Bank has teamed up with IBM to create a new AI governance framework for the banking sector. The initiative helps banks use artificial intelligence safely. It also ensures they follow strict financial rules.
Key points from the partnership
1️⃣ First enterprise-level AI governance framework in Taiwan’s banking sector
The project lays out clear rules for creating, testing, and tracking AI systems in banks.
It’s designed to support responsible and scalable AI adoption across financial services.
2️⃣ Built around global AI standards
The framework aligns banking AI practices with major international standards, including:
The EU AI Act
ISO/IEC 42001 (AI management system standard)
These standards help ensure AI systems remain transparent, accountable, and compliant with regulations.
3️⃣ Full lifecycle governance of AI models
The framework governs the entire lifecycle of AI systems:
Model development and validation
Data governance and privacy controls
Risk assessments and compliance checks
Continuous monitoring after deployment
This method helps banks. It keeps AI decisions safe. These include credit scoring and fraud detection. It also makes them easy to understand.
4️⃣ Includes a banking-focused AI governance white paper
The collaboration created a white paper. It provides clear guidance and tools. There are about 96 ways to manage and oversee AI systems in banks and financial firms.
Why this matters
Banks already use AI for things like:
fraud detection
credit scoring
customer service automation
But regulators increasingly demand clear oversight and accountability for AI decisions. This framework shows how financial institutions can grow AI in key areas while following regulations.
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