Shutterstock to Pay $35 Million Over Auto‑Renewal and Cancellation Practices

What can a $35 million settlement teach companies about subscription billing, auto-renewals, and cancellation practices? In this episode, we unpack the FTC’s case against Shutterstock, which resulted in one of the agency’s largest recent settlements over alleged negative option marketing violations. The complaint alleges that Shutterstock failed to clearly disclose automatic renewals and cancellation fees, did not obtain consumers’ express informed consent for recurring charges, and made it unnecessarily difficult to cancel subscriptions. As regulators continue to focus on auto-renewal programs, recurring billing, and ​“click-to-cancel” principles, the case serves as a powerful reminder that businesses must ensure material terms are clear, consent is meaningful, and cancellation is as straightforward as enrollment.

Hosted by Simone Roach. Based on a blog post by Gonzalo E. Mon.