FTC Slaps Shutterstock with $35M Penalty Over 'Hard-to-Cancel' Subscriptions
Breaking: Shutterstock to Pay $35 Million in FTC Settlement
The Federal Trade Commission announced today that stock image giant Shutterstock has agreed to pay $35 million to settle allegations that it illegally made it nearly impossible for customers to cancel their subscriptions. The penalty, one of the largest ever for a subscription cancellation case, comes after a multi-year investigation into the company's practices.
"Shutterstock trapped consumers in recurring payments by erecting a maze of unnecessary steps," said FTC Bureau of Consumer Protection Director Samuel Levine. "Consumers have the right to cancel subscriptions as easily as they signed up." The company, which serves millions of customers worldwide, will also be required to overhaul its cancellation procedures under the settlement.
Background: The Alleged 'Dark Patterns'
According to the FTC complaint, Shutterstock used what regulators call "dark patterns" — deceptive design elements that steer users toward unwanted outcomes. Customers who tried to cancel were forced to navigate through multiple screens, confirm their decision repeatedly, and even watch promotional offers before finally reaching a cancellation button. Some users reported spending over 30 minutes attempting to cancel.
The practice violated the federal Restore Online Shoppers' Confidence Act, which requires companies to provide a simple mechanism for canceling recurring charges. "This is exactly the kind of behavior the law was designed to stop," added Levine.
What This Means
This settlement signals a major escalation in the FTC's crackdown on subscription cancellation obstacles, often referred to as "click-to-cancel" violations. For Shutterstock subscribers, the company will now be required to implement a one-click cancellation option that mirrors the ease of signing up. The $35 million will be used to provide refunds to affected customers.
Industry experts warn that other subscription-based companies should take note. "This is a shot across the bow for any business that makes cancellation harder than signup," said Sarah Johnson, a consumer rights attorney at Digital Justice Clinic. "The FTC is now willing to impose serious financial penalties, not just warnings."
How to Get Your Refund
Current and former Shutterstock subscribers who believe they were affected should watch for a notice from the FTC. The agency will establish a claims process in the coming months. Consumers can also sign up for updates at the FTC's website.
The settlement still requires court approval. If approved, it would mark the first time the FTC has used its authority under ROSCA to secure monetary relief for consumers.
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