According to the FTC's complaint, Shutterstock marketed certain offerings as "free" or "one-time" while omitting that they would automatically convert to recurring charges or renew without additional action. Some subscriptions carried early-cancellation fees. Until 2024, consumers could only cancel by contacting customer support through phone, chat, or email—no online cancellation option existed.
The settlement requires Shutterstock to provide consumer refunds, clearly disclose all subscription terms before charging, obtain affirmative informed consent, and implement simple online cancellation mechanisms. The order bars the company from misrepresenting subscription terms going forward. This settlement reflects the FTC's sustained enforcement focus on auto-renewal traps and subscription practices that exploit friction in the cancellation process. Attorneys handling consumer protection matters or subscription-based business models should expect continued regulatory pressure in this area.