Shutterstock to Pay USD 35 Million in Subscription Plan Settlement

Shutterstock will pay USD 35 million to resolve charges from the US Federal Trade Commission (FTC). The online provider of stock photography, graphics, and videos was accused of misleading consumers about its subscription plans and making cancellations difficult. This settlement aims to provide "full relief" to consumers harmed by the New York-based company's billing and cancellation practices.

Credit: Al Drago/Bloomberg

The FTC alleged Shutterstock failed to disclose that its "annual, paid monthly" plan automatically renews. Consumers on this plan were subject to substantial cancellation fees. Subscribers also faced obstacles when attempting to cancel, including long phone wait times, multiple email steps, and navigating through eight pages of materials.

Additionally, the company allegedly did not adequately disclose that its "packs," advertised as suitable for "one-time" projects, would automatically renew after one year and refill once fully used. Christopher Mufarrige, FTC consumer protection chief, stated that companies concealing material terms and making cancellations onerous "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 the settlement. The company agreed in Jan. 2025 to be acquired by rival Getty Images, creating a company then valued at USD 3.7 billion. Regulators in the US and Europe are currently reviewing this proposed merger.

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• Shutterstock will pay USD 35 million to settle FTC charges.

• The settlement addresses misleading subscription plans and difficult cancellation practices.

• Accusations included undisclosed automatic renewals for annual plans and "packs," along with substantial cancellation fees.

Source: REUTERS