FTC Secures $35 Million Settlement With Shutterstock Over Subscription “Dark Patterns”

Overview

• The FTC filed and simultaneously settled a federal case accusing Shutterstock of unlawful “negative option” subscriptions in the Southern District of New York.
• The complaint says Shutterstock steered users through an eight‑screen online cancellation flow and hid or broke phone and email paths to stop charges.
• Regulators also say the company buried auto‑renewals, automatic refills of image packs, and a cancellation fee equal to 50% of the remaining contract.
• Marketing for “annual, paid monthly” plans and “one‑time” packs allegedly led people to believe they had monthly terms or no commitment.
• The stipulated order imposes $35 million in consumer redress, a permanent injunction, clear disclosures and express consent, easy one‑click cancellation and a working phone line, plus compliance monitoring that observers expect will trigger private and state cases.