- The FTC reached a $35 million settlement with Shutterstock, Inc. over allegations that the stock photo and video platform violated the FTC Act and the Restore Online Shoppers’ Confidence Act by charging consumers without informed consent and making subscriptions difficult to cancel.
- According to the FTC’s complaint, Shutterstock allegedly failed to clearly disclose that certain annual plans automatically renewed and carried early cancellation fees, and advertised “one-time” on-demand content packs without adequately disclosing that consumers could be automatically charged for additional packs.
- The complaint also alleges that Shutterstock failed to provide simple cancellation mechanisms, including by requiring consumers wishing to cancel to contact customer support before 2024, imposing multi-step email cancellation requirements, and later using a multipage online cancellation flow.
- Under the proposed order, Shutterstock would pay $35 million for consumer relief, stop misrepresenting material terms of its negative option offerings, clearly disclose material terms before obtaining billing information, obtain consumers’ express informed consent, and provide simple cancellation mechanisms, among other requirements.