Penalty Amount
$35,000,000
Shutterstock Inc. agreed to pay $35 million to settle FTC allegations that it charged consumers without their informed consent, failed to disclose auto-renewal and cancellation terms, and made cancellation difficult. The FTC alleged Shutterstock's subscription and on-demand pack offerings violated consumer protection laws through hidden fees and complicated cancellation processes.
Shutterstock must pay $35 million for consumer relief, is prohibited from misrepresenting subscription terms, must clearly disclose material terms, obtain express informed consent before charging, and maintain simple cancellation mechanisms for negative option features.
In-house legal teams should review vendor agreements for subscription-based services, particularly clauses related to auto-renewal, cancellation policies, and billing consent. Key areas include: ensuring clear and conspicuous disclosure of material terms (renewal, fees, cancellation) in customer-facing contracts; verifying that consent mechanisms (e.g., checkboxes, clickwrap) are express and informed; and auditing cancellation processes to ensure they are simple and not burdensome. Vendor agreements with marketing or advertising partners should also be checked for compliance with negative option rules.
Entity
Shutterstock Inc.
Industry
TechnologyOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/05/shutterstock-pay-35-million-settle-ftc-allegations-over-illegal-subscription-cancellation-practices
ShutterStock Complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/ShutterStock-Complaint.pdf
Shutterstock ExhibitA
https://www.ftc.gov/system/files/ftc_gov/pdf/Shutterstock-ExhibitA.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Shutterstock Inc."
"Shutterstock will pay $35 million"
"charging consumers for products without their informed consent and making it difficult to cancel subscriptions"
"FTC Act Section 5"
"prohibits Shutterstock from misrepresenting material terms of its subscription offerings and requires it to disclose material terms of its subscription offerings, obtain consumers’ express informed consent to charges and maintain simple cancellation mechanisms"
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
$2.3M
The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.