Shutterstock to pay $35 million to settle US FTC charges over subscription plans, cancellations
FILE PHOTO: A view of signage at the Federal Trade Commission (FTC) headquarters in Washington, D.C., U.S., November 24, 2024. REUTERS/Benoit Tessier/File Photo
NEW YORK, May 13 : Shutterstock will pay $35 million to settle U.S. Federal Trade Commission charges that the online provider of stock photography, graphics and videos misled consumers about its subscription plans and made it difficult to cancel, the agency said.
Wednesday's settlement resolves accusations that Shutterstock concealed important information from consumers who wanted to license content on its website through annual subscription plans or on-demand "packs" of materials. The FTC said the payment provides "full relief" to consumers harmed by the New York-based company's illegal billing and cancellation practices.
• Shutterstock was accused of failing to disclose that its "annual, paid monthly" plan automatically renews and subjects consumers to substantial cancellation fees.
• The FTC said subscribers who wanted to cancel also faced obstacles including long phone wait times, multiple follow-up steps to cancel by email and having to wade through eight pages of materials before cancelling.
• Shutterstock also allegedly failed to adequately disclose that packs, which it called perfect for "one-time" projects, would be automatically renewed after one year and refilled once fully used.
• FTC consumer protection chief Christopher Mufarrige said in a statement that when companies conceal material terms, do not obtain informed consent before charging consumers and make cancellations onerous, "they deprive consumers of the ability to make informed choices, undermining consumer sovereignty and impeding competition."
• Shutterstock did not admit or deny wrongdoing in agreeing to settle. The company and its lawyers did not immediately respond to requests for comment.
• Shutterstock agreed in January 2025 to be acquired by rival Getty Images, creating a company then valued at $3.7 billion. U.S. and European regulators are still reviewing the merger.
