FTC secured a $35M settlement from Shutterstock for hiding auto-renewal terms, charging without informed consent, and blocking online cancellation before 2024.
Key Takeaways
Shutterstock’s “no commitment” on-demand packs auto-renewed on last download use and annually, without clear disclosure.
Annual paid monthly (APM) plans buried cancellation fees in fine print; early cancellation required phone, chat, or email until early 2024.
FTC charges: no clear material disclosure before billing, no express informed consent, no simple cancellation mechanism.
The $35M goes to harmed consumers; the consent order mandates clear disclosures, express consent, and simple online cancellation going forward.
Commission vote was 2-0; case filed in U.S. District Court for the Southern District of New York.
Hacker News Comment Review
Commenters broadly want a federal rule mirroring California law: cancellation must be available via the same channel used to sign up.
Skepticism that $35M is a real deterrent; one commenter noted the fine roughly equals a full year of Shutterstock’s current earnings, given its weakened financials.
Adobe and AT&T cited repeatedly as the obvious next targets, with one commenter canceling a credit card rather than navigating Creative Cloud cancellation.
Notable Comments
@bpodgursky: Frames $35M as roughly one year of earnings for a company described as “on life support,” raising deterrence questions.
@weird-eye-issue: Describes Shutterstock closing a $300/month account after flagging shared-login IPs as an enterprise violation, illustrating broader aggressive billing behavior.
