Plate 99
Shutterstock FTC $35M settlement: subscriptions, auto-renew, cancel fees (May 2026)
On 13 May 2026 the FTC announced a $35 million proposed settlement with Shutterstock over alleged negative-option subscription and cancellation practices (APM/APU plans and on-demand packs). SDNY; Commission vote 2–0. Allegations labeled; order proposed until court entry. No affiliate.
Aditya Challa4 min read
Shutterstock FTC $35M settlement: subscriptions, auto-renew, cancel fees (May 2026)
On May 13, 2026, the Federal Trade Commission announced that Shutterstock, Inc. will pay $35 million to settle FTC allegations that the stock-media platform charged consumers without informed consent, failed to clearly disclose auto-renewals and early-cancellation fees, and made cancelling subscriptions difficult. ShopperCove is not a party to the case, has not opened a Shutterstock account for this article, has not purchased a pack or subscription, and has not filed a claim. The facts below come from the FTC’s 13 May 2026 press release, the case page, the complaint PDF, the joint motion PDF, and Exhibit A (SDNY case 1:26-cv-03955), all read on 5 October 2026. Complaint claims are allegations. The joint motion states Shutterstock neither admits nor denies the allegations except as specifically stated in the proposed stipulated order. This is not legal advice.
There is no affiliate link in this article.
What the FTC alleged
Per the press release and complaint summary (allegations):
- Shutterstock licenses stock photos, graphics, videos, and music clips, largely through online subscriptions since at least 2020.
- Plans include annual paid-up-front (APU), annual paid monthly (APM), and on-demand “packs.”
- On-demand packs were advertised as “Best for a one-time project” with “no commitment,” but allegedly failed to adequately disclose that packs automatically renewed when the last download was used—and, until early 2024, that they automatically renewed after one year.
- The desktop APM plan selection page allegedly failed to clearly disclose that APM plans auto-renew each year and that consumers face a fee to cancel early; material terms were often buried in fine print.
- Before 2024, consumers allegedly could not complete early cancellation fully online and had to use phone, chat, or email support—described as complicated and time-consuming.
- The complaint also describes a multi-step online cancel flow in which many consumers first learn the early-cancel fee amount (complaint example: 50% of remaining monthly fees in the current year) late in the flow, with no in-flow dispute path.
The FTC charged failures to: (1) clearly and conspicuously disclose material terms before billing; (2) obtain express informed consent before charging cards; and (3) provide simple cancellation mechanisms for negative-option features. Claims include the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA).
Those points remain allegations until (and unless) a court enters findings; the proposed stipulated order resolves the matter without a trial admission of the complaint’s narrative.
What the proposed $35M order does
From the press release and joint motion:
- Shutterstock will pay $35 million, which the FTC says will be used to provide full relief to consumers harmed by the alleged illegal billing and cancellation practices.
- The proposed order prohibits misrepresenting material subscription terms; requires clear disclosure of material terms; requires express informed consent before charges; and requires simple cancellation mechanisms for negative-option features.
- Commission vote authorizing the complaint and proposed order: 2–0.
- Filed in the U.S. District Court for the Southern District of New York (case 1:26-cv-03955 per the joint motion).
- Case status on the FTC case page (read 5 Oct 2026): Pending.
FTC note: stipulated final orders have the force of law when approved and signed by the District Court judge. Treat the settlement as proposed until court entry.
What shoppers should (and should not) do
- Watch for an official FTC refunds / claims notice before trusting unsolicited “Shutterstock FTC refund” emails or DMs. Report fraud at ReportFraud.ftc.gov.
- If you still subscribe, read the live plan terms for renewal date, early-cancel fees, and how to cancel—do not rely on marketing heroes alone.
- This is not a payment-processor settlement (unlike Nuvei / Humboldt / FleetCor notes). It is a subscription / negative-option consumer case closer in theme to junk-fee and hard-cancel stories such as Lens.com and Manchester City / Nissan.
Why ShopperCove is covering this now
October 2026 batches already covered several FTC checkout and competition stories. Shutterstock was held earlier as a non-recall, non-processor subscription case from May. Packaging it here keeps the consumer lane on auto-renew + cancel friction without stacking another CPSC recall or another payment-processor near-dup.
Bottom line
As of sources read 5 Oct 2026, Shutterstock and the FTC have a proposed $35 million settlement (announced 13 May 2026) over alleged negative-option disclosure, consent, and cancellation failures on APM/APU plans and on-demand packs. Allegations neither admitted nor denied except as in the order; SDNY; vote 2–0; case marked Pending until the court enters the stipulated order. No ShopperCove purchase. No affiliate.
Sources
- https://www.ftc.gov/news-events/news/press-releases/2026/05/shutterstock-pay-35-million-settle-ftc-allegations-over-illegal-subscription-cancellation-practices
- https://www.ftc.gov/legal-library/browse/cases-proceedings/shutterstock-inc
- https://www.ftc.gov/system/files/ftc_gov/pdf/ShutterStock-Complaint.pdf
- https://www.ftc.gov/system/files/ftc_gov/pdf/Shutterstock-JointMotion.pdf
- https://www.ftc.gov/system/files/ftc_gov/pdf/Shutterstock-ExhibitA.pdf
- https://www.ftc.gov/legal-library/browse/statutes/restore-online-shoppers-confidence-act
- https://reportfraud.ftc.gov
- https://consumer.ftc.gov
Related
- https://www.shoppercove.com/blog/amazon-prime-ftc-refund-200-october-2026
- https://www.shoppercove.com/blog/lens-com-ftc-hidden-fees-lawsuit-october-2026
- https://www.shoppercove.com/blog/manchester-city-nissan-ftc-4m-junk-fees-settlement-october-2026
- https://www.shoppercove.com/blog/online-seller-profit-series-fee-math-2026
- https://www.shoppercove.com/blog/amway-ftc-225m-mlm-settlement-october-2026
- https://www.shoppercove.com/blog/southern-glazers-ftc-robinson-patman-settlement-october-2026
- https://www.shoppercove.com/blog/ftc-impersonation-rule-anpr-platforms-ads-september-2026
- https://www.shoppercove.com/blog/corteva-ftc-pesticide-loyalty-settlement-october-2026
Lab evidence
What I found running this
Sources read 5 Oct 2026 (Asia/Calcutta) via WebFetch/curl (browser UA for ftc.gov): FTC press release 13 May 2026 (Shutterstock $35M; alleged fail to disclose APM auto-renew + early-cancel fees; on-demand packs marketed “no commitment” but auto-renew; fail express informed consent; hard cancel—pre-2024 early cancel not fully online); case page shutterstock-inc (Pending; Complaint, Joint Motion, Exhibit A); ShutterStock-Complaint.pdf; Shutterstock-JointMotion.pdf ($35,000,000 judgment; SDNY case 1:26-cv-03955; neither admits nor denies except as in order); Shutterstock-ExhibitA.pdf; ROSCA statute page; reportfraud.ftc.gov; consumer.ftc.gov. Reuters paywalled (401) — not used as source. Allegations labeled. Proposed stipulated order until District Court entry. No Shutterstock account opened. No download purchased. No claim filed. No affiliate. Not a payment-processor FTC near-dup (Nuvei/Humboldt/FleetCor).
Related links
Plate 45
Manchester City Nissan FTC $4M junk-fees settlement (19 Aug 2026)
On 19 August 2026 the FTC and Connecticut announced a $4 million settlement with Chase Nissan LLC d/b/a Manchester City Nissan over alleged deceptive certification fees and unauthorized add-ons. Case Pending in D. Connecticut; stipulated order requires total-price prominence and express consent. No affiliate.
5 Oct 2026
Plate 39
Humboldt Merchant Services FTC $12M payment-processor settlement (11 Sep 2026)
On 8 September 2026 the FTC announced, and on 11 September 2026 the Eastern District of Michigan entered, a stipulated order requiring 5967 Ventures, LLC d/b/a Humboldt Merchant Services to pay $12 million and accept permanent bans on processing for certain high-risk merchant categories. Complaint alleges Humboldt processed payments for more than 1,000 shell merchants used in unauthorized-billing scams (including Legion Media fronts), with over $100 million through sham accounts 2021–2023. FTC case status Closed; funds for consumer redress; no public claim form in the press package as of 5 Oct 2026; no affiliate.
5 Oct 2026
Plate 07
Nuvei FTC $4.85M payment-processor settlement (4 Sep 2026)
On 4 September 2026 the FTC announced that Canada-based Nuvei Corporation and subsidiaries will pay $4.85 million to settle charges that the firm opened and maintained payment processing for merchants it knew or should have known were deceptive—including offshore tech-support scams such as Reimage. Complaint and stipulated order filed in U.S. District Court for the District of Arizona; case status Pending; funds for consumer redress; no public claim form in the press package as of 5 Oct 2026; no affiliate.
5 Oct 2026