What Happened
The Federal Trade Commission said Shutterstock will pay $35 million to settle allegations that the stock-photo and media platform illegally made tens of millions of dollars through unfair and deceptive subscription practices.
According to the FTC, Shutterstock failed to clearly disclose key terms, including automatic renewals and early-cancellation fees. The agency also said some on-demand packs were advertised as "Best for a one-time project" with "no commitment," even though they could automatically renew when the last download was used and, until early 2024, after one year.
The FTC complaint also says Shutterstock did not always get express informed consent before charging consumers and, before 2024, required people seeking early cancellation to contact customer support by phone, chat or email instead of finishing the process online.
Why This Matters
Subscriptions are not automatically evil. Plenty of people actually want recurring access to a service. The problem starts when the business model shifts from "customer wants this" to "customer cannot find the exit."
The FTC says the proposed order would require clear disclosures, informed consent before charges, simple cancellation mechanisms, and $35 million for consumer relief. That is the government version of pointing at the cancel button and saying: make it real.
The Dumb Part With The Stock Photo Escape Room
The dumb part is that "no commitment" allegedly came with a hidden renewal mechanism. That is not a product plan. That is a subscription wearing a fake mustache.
If a company can build a polished checkout flow for licensing a photo of a smiling office worker holding a salad, it can also build a cancellation flow that does not require consumers to negotiate with customer support like they are defusing a tiny invoice bomb.
The Bottom Line
The settlement still needs court approval. The FTC says the money will be used to provide relief to harmed consumers.
For everyone else, the lesson remains simple: when a website says "one-time project," check whether the fine print is quietly enrolling your credit card in a long-term relationship.