Subscriptions ripping off the public
Consumer advocacy and regulatory bodies are taking concrete action against what many see as "daylight robbery" in credit-based subscription systems.
The most significant actions are coming from government regulators. In a landmark case, the Federal Trade Commission (FTC) has taken direct action against Shutterstock, a pioneer of the credit model. On May 14, 2026, the FTC announced a $35 million settlement with the company. The FTC alleged that Shutterstock engaged in illegal practices, including failing to clearly disclose auto-renewal terms, charging consumers without proper consent, and making cancellation extremely difficult—requiring users to contact support by phone or email before 2024.
This action is part of a broader regulatory crackdown. In the UK, the Competition and Markets Authority (CMA) is enforcing new rules under the Digital Markets, Competition and Consumers Act 2024 (DMCCA). These rules, set to be fully implemented by Spring 2027, will introduce "cooling-off" periods after free trials and auto-renewals, mandate clear reminder notices, and require businesses to offer simple, online cancellation. Companies found in violation could face fines of up to 10% of their global annual turnover.
These regulatory moves signal a strong shift towards holding companies accountable for opaque and restrictive subscription practices, aiming to give consumers more control and transparency.
