Shutterstock to Pay $35 Million to FTC Over Allegations the Company Misled Customers

Shutterstock has agreed to pay the Federal Trade Commission (FTC) $35 million over allegations that the photo agency misled customers and illegally made millions of dollars from them.

The settlement was reached last week after the FTC alleged that Shutterstock’s on-demand packs were advertised as “best for a one-time project,” with “no commitment,” but failed to clearly disclose that the packs automatically renewed when the last download in the pack was used and automatically renewed after one year.

According to Reuters, the FTC said that subscribers who wanted to cancel faced long waiting times on the phone, multiple email exchanges, and had to read through eight pages of materials before being able to cancel.

The FTC also said that the “annual, paid monthly plan” subjected consumers to substantial cancellation fees, while not disclosing that the plan automatically renewed.

“Subscription and negative option features can be beneficial for both companies and consumers, making renewal simpler and streamlining payment processes,” says Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection.

“But these benefits depend critically on firms clearly disclosing material terms, securing express and informed consent before charging consumers, and ensuring cancellation is a straightforward and simple process. When firms fail to follow these simple principles, they deprive consumers of the ability to make informed choices, undermining consumer sovereignty and impeding competition. The Commission’s action today underscores its commitment to preserving consumer choice and facilitating competition in digital markets and subscriptions.”

Shutterstock did not admit or deny wrongdoing by agreeing to the multi-million dollar settlement. The company has not publicly commented on the case. The settlement will be used to “provide full relief” to the consumers affected by Shutterstock’s illegal business practices. Photo Archive News notes that a proposed order will require Shutterstock to disclose the “material terms of its subscription offering.”

In 2025, Shutterstock announced it was to be acquired by Getty Images in a deal worth $3.7 billion. But despite being approved by the United States Department of Justice, the Competition and Markets Authority in the U.K. has said Shutterstock needs to sell its editorial business for the deal to go through.