FTC Secures $35 Million Settlement With Shutterstock Over Deceptive Subscription Practices

Overview

• Regulators alleged Shutterstock hid automatic renewals, early termination fees, and automatic refills in fine print for annual plans and on‑demand image packs.
• Internal emails quoted in the complaint said customers did not realize what they signed up for and called the cancellation fee a powerful retention tool.
• The FTC described an eight‑screen online cancellation path and hard‑to‑find or unreliable phone and email options, which it said violated ROSCA, a federal law that requires a simple way to stop recurring charges.
• Under a stipulated court order, Shutterstock accepted a permanent injunction and a $35 million judgment for consumer redress and must provide clear terms, express informed consent, one‑click online cancellation, and a working customer‑service phone line.
• Legal coverage says the settlement will spur private class actions and state enforcement and is already pushing subscription businesses to audit sign‑up flows, renewal notices, and cancellation steps.