FTC Sues Shutterstock Over Misleading Subscription Practices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 13 2026
0mins
Source: Newsfilter
- Misleading Subscription Terms: The U.S. Federal Trade Commission (FTC) filed a lawsuit against Shutterstock on Wednesday, accusing the company of using complicated and onerous terms in its subscription plans, misleading consumers into believing they are simple, which could adversely affect consumer purchasing decisions and trust.
- Increased Cancellation Difficulty: The FTC highlighted that Shutterstock's 'annual, paid monthly' plans are difficult to cancel, creating obstacles for consumers attempting to unsubscribe, which not only harms user experience but may also lead to customer attrition and damage to brand reputation.
- Legal Action Context: The lawsuit was filed in Manhattan federal court, reflecting growing regulatory scrutiny over transparency and fair trading practices among online service providers, potentially triggering broader compliance reviews across the industry.
- Potential Market Impact: Should the FTC prevail, Shutterstock may be compelled to revise its subscription models and terms to enhance transparency, which would significantly impact its business model and future revenue, while also influencing operational strategies of similar companies.
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Analyst Views on SSTK
Wall Street analysts forecast SSTK stock price to rise
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Current: 15.540
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Averages
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About SSTK
Shutterstock, Inc. is a global creative platform connecting brands and businesses to high-quality content. Its platform brings together users and contributors of content by providing readily searchable content that customers pay for licenses and by compensating contributors as their content is licensed. Contributors upload their content to the Company’s Web properties in exchange for royalty payments based on customer download activity. It offers licenses to metadata associated with the Company’s images, footage, music tracks and 3D models through the Company’s data offering, distribution and advertising services from the Company’s Giphy business, which consists of graphics interchange format visuals (GIFs). It offers specialized solutions for content matched with production tools and services through Shutterstock Studios. Its content offering includes images consisting of photographs, vectors and illustrations and footage consisting of video clips and cinema-grade video effects.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Large User Base: Giphy's library boasts over 10 billion items, catering to Meta's 3.58 billion daily active users, particularly appealing to Gen Z and millennials who prefer visual communication, thus increasing the platforms' attractiveness.
- Evolution of Digital Communication: Giphy's Chief Growth Officer, Kevin Hein, emphasized that users prefer to express emotions visually rather than through text, and this partnership ensures a seamless experience across Meta's apps as digital communication continues to evolve, solidifying both companies' market positions.
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See More
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- Enhanced User Experience: GIFs and stickers are shared daily across Meta platforms, highlighting the significance of visual expression in everyday conversations and enhancing user interaction on social media.
- Emotional Expression Survey: A consumer survey commissioned by GIPHY from Censuswide reveals that users prefer expressing emotions through visuals rather than text, underscoring GIPHY's essential role in digital communication.
- Market Influence Expansion: As a wholly-owned subsidiary of Shutterstock, GIPHY reaches over 1 billion daily active users and serves more than 10 billion pieces of short-form content daily, further solidifying its market leadership in the visual communication space.
See More
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- User Experience Enhancement: The integration of GIPHY allows users to seamlessly utilize GIFs and stickers on Meta platforms, addressing the need for emotional expression in everyday communication and further promoting the visual and intuitive nature of digital interactions.
- Market Research Insight: A consumer survey commissioned by GIPHY and conducted by Censuswide reveals that users prefer expressing emotions through visuals rather than text, underscoring GIPHY's significance in modern communication.
- Daily User Reach: As a wholly-owned subsidiary of Shutterstock, GIPHY serves over 1 billion users daily with more than 10 billion pieces of short-form content, showcasing its extensive influence and market position in global digital communication.
See More
