Adobe Charged You 50% to Cancel? The CMA Says That Might Be Illegal

On 19 March 2026, the Competition and Markets Authority (CMA) launched a formal investigation into Adobe over concerns that its early cancellation fees may breach consumer protection law. This came days after Adobe agreed to pay $150 million to settle similar allegations in the United States. If you've ever been stung by a surprise cancellation fee, from Adobe or anyone else. Here's what you need to know.

What Adobe Does

Adobe sells its Creative Cloud suite (Photoshop, Illustrator, Premiere Pro, etc.) on an "annual plan, paid monthly" basis. Sounds like a monthly subscription, right? It's not. It's a 12-month commitment with monthly billing.

If you cancel after the first 14 days, Adobe charges an early termination fee of 50% of the remaining contract value. Cancel 6 months in? You owe 50% of the remaining 6 months. That can be £150+ depending on your plan.

Why the CMA Is Investigating

The CMA is looking at whether:

• The cancellation terms are unfair under consumer protection law
• Customers receive clear and timely information about the fees before purchase
• The way the plan is presented could mislead consumers into thinking it's a simple monthly subscription

This is the ninth business the CMA has investigated using its new direct enforcement powers under the Digital Markets, Competition and Consumers Act 2024. The CMA can now determine breaches without going to court, and fine companies up to 10% of global turnover.

Are Cancellation Fees Legal?

It depends. A cancellation fee isn't automatically unfair, but it can be if:

• You weren't clearly told about it before you signed up
• The fee is disproportionate to the company's actual losses from your cancellation
• The contract was presented misleadingly - for example, calling it a "monthly plan" when it's actually annual

Under the Consumer Rights Act 2015, contract terms must be fair. A term is unfair if it creates a significant imbalance between the company's rights and yours, to your detriment.

How to Challenge a Cancellation Fee

Step 1: Check Your Cooling-Off Rights

If you signed up online or by phone (a "distance contract"), you have a 14-day cooling-off period. During this window, you can cancel for any reason with no penalty. The clock starts from the day you sign up.

Step 2: Review the Original Sign-Up Process

Think about what you were told before purchase:

• Was the cancellation fee clearly stated before you committed?
• Was the annual commitment made obvious, or did it look like a monthly subscription?
• Were you shown terms and conditions that mentioned the fee?

If the fee wasn't made clear, you have strong grounds to challenge it.

Step 3: Complain to the Company

Write to the company's complaints team (not just customer service). State:

• The fee is unfair because [your reason]
• You were not adequately informed before purchase
• You expect the fee to be waived

Give them 14 days to respond.

Step 4: Report to the CMA

If you believe a company's cancellation fees are unfair or misleading, you can report it to the CMA. They're actively investigating these practices, and consumer reports help build enforcement cases.

Step 5: Use Your Card Provider

If you paid by credit card and the charge is over £100, you may have a Section 75 claim if the contract was misrepresented. For debit card payments, chargeback may be an option if you can show the terms were misleading.

It's Not Just Adobe

Plenty of companies use the same "annual plan, billed monthly" trick:

• Gyms that lock you into 12-month contracts
• Broadband providers with early exit fees
• Mobile phone contracts with termination charges
• Software subscriptions (Microsoft 365, antivirus, etc.)
• Dating apps with auto-renewing annual plans

The approach is always the same: make it easy to sign up, make it painful to leave.

New Laws Are Coming

The DMCC Act includes new subscription contract protections expected in Autumn 2026. These will require companies to let you cancel with the same ease as signing up, give you 14-day cooling-off periods on renewals, and send you advance notice before charging for renewals.

Until then, your existing rights still apply. Companies can't hide material terms, charge disproportionate fees, or mislead you about what you're signing up for.

What to Do Next

If you've been charged a cancellation fee you think is unfair:

1. Check whether you were within your 14-day cooling-off period
2. Review what information you were given before purchase
3. Complain formally to the company
4. Use our Cancel Subscription Generator to create a professional cancellation letter
5. Report the practice to the CMA to support their enforcement work