Shutterstock ($SSTK) agreed to pay $35 million to settle Federal Trade Commission allegations that the company used deceptive subscription and billing practices tied to its stock photo and video services. According to the FTC complaint, Shutterstock failed to clearly disclose automatic renewals, cancellation fees, and “auto-refill” charges tied to annual subscriptions and on-demand content packs.
- The FTC alleged Shutterstock marketed some content packs as “Best for a one-time project” while automatically refilling packs and charging customers again after downloads were exhausted.
- The complaint said Shutterstock charged cancellation fees equal to 50% of remaining annual subscription obligations for some plans.
- FTC filings described cancellation flows requiring multiple pages, surveys, retention offers, and additional confirmation steps before cancellation was completed.
- The settlement requires Shutterstock to improve disclosures, obtain informed consent before charges, and maintain simpler cancellation systems.
Relevant Companies
- Shutterstock ($SSTK) - Facing regulatory scrutiny, operational changes, and settlement costs tied to subscription practices.
- Adobe ($ADBE) - Mentioned in the FTC complaint as facing similar scrutiny over subscription cancellation practices.
- Spotify ($SPOT) - Subscription-based digital platform operator that could face broader industry attention on renewal disclosures and cancellations.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
