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FTC settles with Shutterstock for $35M over auto-renewals and hard cancellations

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Why it matters

Shutterstock will pay $35 million to settle Federal Trade Commission allegations that it deceived customers through opaque subscription terms, difficult cancellations, and aggressive auto-renewal practices. The FTC charged that Shutterstock failed to clearly disclose material billing terms before charging customers, did not obtain express informed consent for charges, and deliberately made it hard to cancel—particularly for annual plans and content-pack subscriptions. Under the proposed order, Shutterstock must stop misrepresenting subscription terms, provide clear upfront disclosures, secure explicit customer consent before billing, and maintain straightforward cancellation mechanisms for all negative-option features.

The settlement amount and specific remedies remain subject to final approval. The FTC has not yet disclosed whether Shutterstock admitted wrongdoing or detailed the full scope of affected customers.

This settlement lands as the FTC intensifies enforcement against subscription dark patterns. The agency sued Adobe over similar practices in 2024, and internal Shutterstock communications reportedly show employees worried the company's own tactics might face identical scrutiny. The $35 million penalty signals that subscription businesses cannot rely on friction-laden cancellation processes or buried billing terms. Attorneys advising companies with recurring billing models should audit their disclosure practices, consent mechanisms, and cancellation workflows now—the FTC is clearly willing to pursue seven-figure settlements in this space.

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