Shutterstock Fined $35M by FTC for Misleading Subscription Practices

Shutterstock has agreed to pay $35 million to the Federal Trade Commission (FTC) to settle allegations that it misled customers about subscription terms and made cancellation difficult. The FTC claimed that Shutterstock's on-demand packs were advertised as best for one-time projects with no commitment, but failed to clearly disclose automatic renewal after the last download or after one year. Subscribers faced long phone waits, multiple emails, and had to read eight pages of materials to cancel. The annual paid monthly plan also subjected consumers to substantial cancellation fees without proper disclosure. Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection, emphasized that firms must clearly disclose terms, obtain informed consent, and ensure straightforward cancellation. Shutterstock did not admit or deny wrongdoing, and the settlement will provide relief to affected consumers. A proposed order requires Shutterstock to disclose material terms of its subscription offerings. In 2025, Shutterstock announced a $3.7 billion acquisition by Getty Images, but the UK's Competition and Markets Authority has required Shutterstock to sell its editorial business for the deal to proceed.