Investing.com -- Shutterstock Inc. will pay $35 million to settle Federal Trade Commission allegations that the digital photo and video platform charged consumers for products without informed consent and made subscription cancellations difficult.

The FTC alleged that the New York-based company failed to disclose important information about subscription terms since at least 2020. The agency said Shutterstock advertised on-demand packs as suitable for one-time projects with no commitment, but did not adequately disclose that these packs automatically renewed when the last download was used and, until early 2024, renewed after one year.

The complaint stated that Shutterstock's plan selection page for annual paid monthly subscriptions often failed to clearly disclose that plans would automatically renew at the end of each year and that consumers would be charged a fee to cancel before the term ended. The company buried such details in difficult-to-find fine print, according to the FTC.

The FTC charged Shutterstock with failing to clearly disclose material terms before billing, failing to obtain consumers' express informed consent before charging their credit cards, and failing to provide simple cancellation mechanisms. Before 2024, consumers could not complete early cancellation online and were required to contact customer support by phone, chat, or email, the agency said.

The $35 million payment will be used to provide relief to affected consumers. The proposed order prohibits Shutterstock from misrepresenting material terms of its subscription offerings and requires the company to disclose material terms, obtain express informed consent to charges, and maintain simple cancellation mechanisms.

The Commission vote authorizing staff to file the complaint and proposed order was 2-0. The case was filed in the U.S. District Court for the Southern District of New York.