FTC settled with Shutterstock for $35M over undisclosed auto-renewals, hidden cancellation fees, and no online cancellation path before 2024.
Key Takeaways
On-demand packs marketed as “no commitment” auto-renewed on last download use and annually, without adequate disclosure.
APM plan enrollment pages frequently omitted early-termination fees and auto-renewal terms, burying details in fine print.
Before 2024, cancellation required phone, chat, or email contact – no self-serve online option existed.
FTC order requires clear disclosure of material terms, express informed consent before charging, and simple cancellation mechanisms going forward.
$35M goes directly to harmed consumers as full relief, not a general fund.
Hacker News Comment Review
Commenters see this as a gap for compliant subscription infrastructure, with Paddle, Stripe Billing, and PayPal subscriptions cited as existing tools that already handle standards-aligned flows.
