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Shutterstock has agreed to pay $35 million to settle allegations by the Federal Trade Commission that its subscription cancellation practices were illegal and difficult for customers to reverse. The settlement resolves a 2025 investigation into the image‑stock company’s billing methods and ends a year‑long legal dispute.

Background

Shutterstock, a leading provider of royalty‑free images, videos, and music, offers subscription plans that customers can cancel online. In 2024 the FTC launched an investigation after complaints that the company’s cancellation process was opaque and that customers were unable to easily terminate subscriptions. The agency cited several instances where users reported that their cancellations were not processed or that they were still charged after attempting to opt out.

What Happened

The FTC’s press release, dated 18 May 2026, announced that Shutterstock would pay $35 million to settle the allegations. The settlement includes a payment to the FTC and a commitment by Shutterstock to change its cancellation procedures. The company will also provide a public report detailing the steps it will take to ensure cancellations are processed promptly and transparently. No admission of wrongdoing was required as part of the settlement.

Market & Industry Implications

The settlement underscores the regulatory scrutiny facing subscription‑based services, particularly those in the digital media sector. It signals to competitors that the FTC is willing to enforce consumer‑protection standards around cancellation policies. The $35 million payment may also affect Shutterstock’s financial statements, though the company has not disclosed the impact on its earnings. The case could prompt other image‑stock and digital‑content firms to review and adjust their cancellation workflows to avoid similar regulatory action.

What to Watch

  • Shutterstock’s forthcoming public report on cancellation process changes, due to be released within the next 90 days.
  • Potential updates from the FTC on enforcement actions against other subscription services in the same sector.
  • Industry commentary on best practices for subscription cancellations, which may influence regulatory guidance.