Shutterstock Inc. will pay $35 million to settle Federal Trade Commission allegations that the company used unfair and deceptive subscription and cancellation practices on its online licensing platform. The FTC announced the proposed settlement on May 13, 2026.

The FTC alleged that Shutterstock charged consumers without informed consent, failed to clearly disclose auto-renewals and cancellation charges, and made subscriptions difficult to cancel. Shutterstock did not admit or deny wrongdoing in agreeing to settle, according to Reuters.

Shutterstock licenses stock photos, graphics, videos and music clips. According to the FTC, the company has offered most of its content through online subscriptions since at least 2020, including annual paid-up-front plans, annual paid-monthly plans and on-demand “packs.”

The complaint alleged that Shutterstock’s annual paid-monthly enrollment flow frequently failed to clearly disclose that plans would automatically renew at the end of each year and that consumers could be charged a fee for canceling before the end of the term. The FTC also alleged that Shutterstock often placed those details in difficult-to-find fine print.

The FTC also focused on Shutterstock’s on-demand packs. According to the agency, Shutterstock advertised certain packs as “Best for a one-time project” and “no commitment,” but allegedly failed to adequately disclose that the packs automatically renewed when the last download was used and, until early 2024, after one year.

Cancellation design was another focus of the complaint. The FTC alleged that, before 2024, consumers could not complete early cancellation online and were required to contact customer support by phone, chat or email.

Under the proposed order, Shutterstock would pay $35 million for consumer relief. The proposed order would also prohibit Shutterstock from misrepresenting material subscription terms and require the company to disclose material terms, obtain express informed consent before charges and maintain simple cancellation mechanisms for negative option features.

The case was filed in the U.S. District Court for the Southern District of New York. The Commission vote authorizing the complaint and proposed order was 2-0. The FTC notes that stipulated final orders have the force of law when approved and signed by the District Court judge.

The settlement also comes as Shutterstock is involved in a proposed $3.7 billion merger with Getty Images. Separately, Reuters reported that the UK Competition and Markets Authority said it would clear the deal if Shutterstock sells its editorial arm to address concerns around news content supply in the UK.

The case follows the FTC’s March 2026 move to seek comment on whether to amend its Negative Option Rule. The FTC said it was seeking input on recurring payments, consent, disclosures and cancellation obstacles after the Eighth Circuit vacated the agency’s amended click-to-cancel rule on procedural grounds in July 2025. No new federal rule has taken effect, but the Shutterstock settlement shows the agency is still pursuing subscription practices through enforcement while it considers future rulemaking.

INSIDER TAKE

The Shutterstock settlement is a reminder that subscription compliance risk did not disappear when the FTC’s click-to-cancel rule was vacated on procedural grounds. The agency is now moving on two tracks: reopening negative-option rulemaking while continuing to bring enforcement actions under existing authorities.

For subscription operators, the practical lesson is to review the full customer journey, not just the checkout page. Annual plans, paid-monthly commitments, prepaid offers, content packs and “one-time” products should be tested across plan selection, checkout, confirmation language, renewal notices, cancellation paths, save offers and support scripts.

The case also highlights the risk of terms that are technically available but not practically clear. Auto-renewals, cancellation fees and early termination terms need to be visible before the customer commits, especially when the offer uses language such as “monthly,” “no commitment” or “one-time.”

The operating takeaway is straightforward: subscription teams should test consent and cancellation with the same rigor they apply to conversion. If customers can enroll online, understand the recurring terms, see any fee exposure and cancel without unnecessary friction, the business is in a stronger compliance position.