WASHINGTON, D.C. — Shutterstock will pay $35 million to settle allegations by the Federal Trade Commission that the stock media provider used deceptive subscription and billing practices that led consumers to incur recurring charges without informed consent.
The proposed settlement resolves FTC claims that Shutterstock failed to clearly disclose automatic renewal terms, cancellation fees, and subscription conditions tied to its stock photo, video, and music licensing services.
The agency alleged that Shutterstock generated tens of millions of dollars through practices that made it difficult for users to cancel subscriptions and understand renewal obligations.
According to the complaint, the company marketed certain on-demand content packs as suitable for “a one-time project” with “no commitment,” while automatically renewing those plans after customers exhausted downloads and, until early 2024, after one year.
The FTC also alleged that Shutterstock’s annual paid monthly subscription plans did not clearly disclose that subscriptions automatically renewed annually or that users could face cancellation fees if they terminated plans before the contract period ended.
Regulators said key terms were often buried in fine print and that consumers were not adequately informed before charges were processed.
The complaint further alleged Shutterstock failed to obtain consumers’ express informed consent before billing credit cards for subscription renewals and content packs.
Before 2024, customers seeking early cancellation reportedly could not complete the process online and instead had to contact customer service through phone, email, or chat channels, which regulators described as cumbersome and time-consuming.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said subscription systems must provide transparent disclosures and straightforward cancellation processes.
“When firms fail to follow these simple principles, they deprive consumers of the ability to make informed choices,” Mufarrige said in a statement.
Under the proposed order, Shutterstock would be barred from misrepresenting subscription terms and required to clearly disclose billing conditions, secure informed consent before charging customers, and maintain simplified cancellation mechanisms.
The FTC said the $35 million payment would be used to provide refunds or other relief to affected consumers.
The Commission voted 2-0 to authorize the complaint and settlement filing in the U.S. District Court for the Southern District of New York.
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