FTC hits Shutterstock with $35M penalty over dark-pattern subscription traps

Shutterstock has agreed to pay $35 million to settle FTC allegations that it ran its subscription business on deceptive terms for years. The agency found the stock-media company auto-renewed on-demand content packs marketed as ‘no commitment’ purchases, hid renewal and early-termination fee details in fine print on its annual paid-monthly plan signup, and charged customers without proper informed consent.

Cancellation was the other half of the trap. Until 2024, customers could not end annual plans through the website and had to navigate phone, chat, or email support queues to escape. The FTC’s order forces Shutterstock to clearly disclose subscription terms upfront, get explicit consent before billing, and offer a straightforward cancellation path going forward, with the settlement funds earmarked for refunds to harmed consumers.

The case continues the FTC’s enforcement push against negative-option billing and dark patterns under its updated Bureau of Consumer Protection priorities, signaling that SaaS and digital-content vendors burying renewal terms or gating cancellation behind support reps remain squarely in the agency’s sights.