SHUTTERSTOCK PAYS $35M FTC SETTLEMENT OVER SUBSCRIPTION PRACTICES

The FTC alleged that Shutterstock deceived users about subscription plan terms and auto-renewal policies. The settlement addresses complaints that the company obscured cancellation options, forcing customers to navigate complicated processes to stop recurring charges. The $35 million settlement resolves charges spanning consumer protection violations. Shutterstock must revise its subscription disclosures to clearly present key terms upfront, including renewal dates, pricing, and cancellation procedures. The settlement also requires the company to provide simple cancellation mechanisms. Users must be able to cancel subscriptions through the same method used to sign up or through a straightforward online process. This action aligns with increased FTC scrutiny of subscription-based business models. The agency has targeted multiple companies for similar practices, focusing on deceptive auto-renewal schemes and hidden cancellation barriers.