SSTK · Shutterstock, Inc.

Shutterstock resolved an ongoing FTC investigation into its subscription practices through a settlement filed on May 13, 2026, in the Southern District of New York, avoiding prolonged litigation. The $35 million payment, to be funded from existing cash reserves in Q2 2026, represents a significant one-time cash outflow but eliminates uncertainty from the probe that started with a Civil Investigative Demand in August 2024. The Company had cooperated fully, leading to discussions in January 2026. Beyond the financial penalty, the stipulated order mandates enhanced disclosures and operational changes to enrollment and cancellation processes, aimed at compliance with Section 5 of the FTC Act and ROSCA. Investors should note this resolves the matter without admission of wrongdoing beyond the agreement terms, potentially impacting future subscription revenue models but providing clarity on regulatory risks in digital content services.