Shutterstock Pays $35 Million to Settle FTC Dispute Over Subscription Practices
Introduction
Shutterstock has agreed to pay a financial settlement to the U.S. Federal Trade Commission (FTC) to resolve claims that the company used deceptive billing and cancellation methods.
Main Body
The legal action focused on how the company hid important details about its subscription plans. Specifically, the FTC asserted that the 'annual, paid monthly' plan did not clearly explain automatic renewals or the high fees charged for canceling early. Furthermore, the agency emphasized that 'on-demand' content packs, which were marketed for single projects, were automatically renewed every year without properly notifying the customers. The FTC also found that Shutterstock created intentional obstacles to prevent users from canceling their services. These barriers included long wait times on the phone, repetitive email requirements, and a confusing eight-page digital process. Christopher Mufarrige, the FTC's consumer protection chief, stated that hiding key terms and making cancellation difficult takes away consumer choice and harms fair market competition. At the same time, Shutterstock is going through a major corporate change. In January 2025, the company agreed to be bought by Getty Images in a deal that would create a business valued at $3.7 billion. This merger is currently being reviewed by regulators in the U.S. and Europe. It is important to note that Shutterstock reached this settlement without admitting or denying that it did anything wrong.
Conclusion
Shutterstock has settled the FTC charges for $35 million while its planned acquisition by Getty Images is still under regulatory review.
Learning
⚡ The 'Power Shift': From Simple Verbs to Precise Actions
At an A2 level, you probably use words like say, do, or give. To reach B2, you need precision. Look at how this text describes a legal fight. Instead of using simple words, it uses "Corporate Action Verbs."
🛠️ The Upgrade Path
| A2 Logic (Simple) | B2 Logic (Precise) | Why it matters |
|---|---|---|
| The company paid money to stop the fight. | Settle a dispute | "Settle" implies a formal agreement to end a conflict. |
| The FTC said that... | Asserted / Emphasized | "Asserted" shows confidence; "Emphasized" shows importance. |
| They made it hard to stop. | Created obstacles | Using a noun ("obstacles") makes the sentence sound professional. |
| They are buying the company. | Acquisition / Merger | These are the specific business terms for buying/joining companies. |
🧠 Linguistic Insight: The "Without" Clause
Check out this specific phrase from the text:
"...without admitting or denying that it did anything wrong."
The B2 Trick: Using "without + -ing" is a sophisticated way to add a condition to a sentence without starting a whole new one.
- A2: They paid the money. But they didn't say they were wrong.
- B2: They paid the money without admitting they were wrong.
Try applying this to your life:
- Instead of: "I finished the exam. I didn't look at my notes."
- Use: "I finished the exam without looking at my notes."
🚩 Vocabulary Warning: "Deceptive"
In the text, billing methods are called "deceptive."
- A2: "It is a lie" or "It is fake."
- B2: "It is deceptive."
Deceptive doesn't just mean a lie; it means something is designed to trick you into believing something else. This is a high-value word for B2 exams.