Shutterstock to pay $35M over hard-to-cancel subscriptions
150 points
7 hours ago
| 12 comments
| ftc.gov
| HN
CM30
2 hours ago
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Good. There needs to be a US-wide law that any method used to sign up for a subscription has to be a valid way to unsubscribe too. If you allow users to sign up online, you should also be required to let them unsubscribe online too.

Basically, take the Californian setup, and apply it to the whole US. And pretty much every country in Europe.

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ge96
35 minutes ago
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Gyms
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zackify
3 hours ago
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Can they please do this with at&t internet.
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weird-eye-issue
1 hour ago
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One time for my small business I shared a login with one of my employees and they tried to get us to buy some sort of Enterprise subscription because they claimed that dozens of IP addresses were logging into the account and when we refused they simply closed our account. We were paying like over $300 per month and not even using the full subscription limits... We ended up finding a cheaper solution and now just use AI images so yeah it was pretty dumb on their part.
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jaynate
51 minutes ago
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Who cares how much you paid? This doesn't seem predatory, you signed up for it and you violated the TOS.
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rectang
6 hours ago
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Did Shutterstock come out money ahead?

Is 35 million and the potential for future punishment a sufficient deterrent?

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bpodgursky
5 hours ago
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Look at the stock history. The company is on life support. This is basically an entire year of earnings.
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altrum
3 hours ago
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regardless, still likely came out ahead
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josh_p
3 hours ago
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Getty’s trying to acquire them pending approval from UK’s regulatory body.
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chancek
7 hours ago
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A great idea of a product is some sort of unified system for companies to correctly manage subscriptions. There needs to be standards for what makes a user flow acceptable or not when it comes to cancellations.
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t-writescode
7 hours ago
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f001
6 hours ago
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To add to this, Apple has the subscriptions panel on iOS in the settings app showing you everything on your account including third party apps as long as you subscribed through apps instead of websites.
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recursive
5 hours ago
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Why would a company participate in this? Most don't seem interested in making cancellation easier.
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dawnerd
5 hours ago
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Because they like money and having different choices for consumers to give them money wins out.
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benoau
4 hours ago
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But they make way more money implementing the dark pattern playbook. It's hardly an accident when subscriptions are hard to cancel it's a deliberate optimization.
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neallindsay
5 hours ago
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You have to participate in order to get access to most iPhone users.
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Modified3019
6 hours ago
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I use privacy.com virtual cards. I make a card for each vendor, and define a limit for it. I can kill the cards anytime.
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echoangle
4 hours ago
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Just because you revoke payment doesn’t mean you cancelled (at least in Europe). If you just stop paying, they will sue you to get the money.
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supern0va
3 hours ago
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Yep, in the US you can have the debt sent to collections.

My spouse got fucked by Shutterstock and we have to have a calendar reminder to cancel this when the year is up, since cancelation prior will result in us still paying out the year, but not getting the remainder of the service.

They're extremely scummy. I could certainly block the charges, but they'd just come after us and cause a headache.

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x86hacker1010
6 hours ago
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Same. Apparently their privacy policy is sketchy as hell but the product has been consistent for over 12 years of using it
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ktallett
5 hours ago
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If your business is only viable due to shady subscription practices then it doesn't deserve to be running, whether it's Adobe, gyms, or whatever.
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daveguy
2 hours ago
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I'm old enough to remember when we had a Consumer Financial Protection Bureau (CFPB) to push back against this kind of anti-consumer crap. It got doge'd by Dumpty/Musk.
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paulddraper
2 hours ago
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They stopped Shutterstock?
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whh
6 hours ago
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Adobe needs to be next. I had to cancel a card because that was easier than cancelling Creative Cloud.
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sanswork
6 hours ago
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Adobe isn't hard to cancel if you sign up for monthly subscriptions. I do it fairly regularly because I need PS in short bursts.

A lot of people sign up for discounted annual commitments though then complain when they can't cancel before the year is up.

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IneffablePigeon
5 hours ago
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I had been paying monthly for 13 years straight and they still demanded a cancellation fee because it turned out I was on an annual commitment (which by the way they hiked the price of by 50% with a month’s notice and by the time you notice the larger payment go out you are in a whole new 12 months).

So yes, I complained about that.

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sanswork
5 hours ago
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Ok so you were on an annual plan to save money and when you cancelled you had to pay an exit fee to account for the annual discount. Seems reasonable to me.

They gave you a months notice of the price increase and you didn't cancel until after it went into effect?

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m463
54 minutes ago
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Take a step back and think of the company who designed this machiavellian scheme and generated this dramatic situation...

is this a business relationship with trust and maturity?

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sanswork
47 minutes ago
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"We will give you access to annual pricing discounts but not require you to pay the full year up front"

It's not complex or dramatic.

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HDBaseT
2 hours ago
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An annual plan shouldn't require a termination fee. If I purchase an Annual Subscription, I should be able to cancel it whenever, with no fee whilst retaining the benefits for my subscription, as I paid for a whole year up front anyways....

Adobe software being a subscription service is nonsense too, but thats for another discussion.

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sanswork
2 hours ago
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Yes, and if you get an annual plan from adobe and pay up front there is no fee for cancelling. The fee is if you get an annual plan with a monthly payment and cancel early.

I remember when it was like $600 for photoshop for a single version(like 25 years ago so what would that be today?). The subscription pricing is a steal.

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HDBaseT
30 minutes ago
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If the subscription pricing was a "steal" and the perpetual licensing was genuinely more expensive and worse, they'd still offer the perpetual licensing.

Instead they killed it, they clearly do not want to cannibalize their subscription offing. It clearly makes them more money.

Your first point is valid, I was misunderstanding the yearly subscription pricing, they offer an upfront payment as well as a monthly (but with year commitment).

I believe still however, if you pay for a year, cancel, you still get access cut off. Which is absurd.

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hartator
5 hours ago
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Shouldn’t auto renew and auto commit though.
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sanswork
5 hours ago
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Why? It's a subscription auto-renew is the default. As for auto-commit why would they change your subscription choices on you without you choosing it?
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Marsymars
39 minutes ago
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> It's a subscription auto-renew is the default.

There are a number of subscriptions where I regularly want only a single month of service at a time.

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HDBaseT
2 hours ago
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What happens if Adobe changes the price from $299 yearly to 29k?

Do you think that is fair? After all they gave you 30 days!

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sanswork
2 hours ago
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Why do you feel the need to make up ridiculous numbers?
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DangitBobby
2 hours ago
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Because it's not the price you agreed on? Crazy what you people are willing to accept as normal.
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sanswork
2 hours ago
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The notification is telling you of the new price. If you don't do anything at that point then it is the price you agreed on.
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DangitBobby
5 hours ago
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Why are you defending obvious theft?
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koolba
5 hours ago
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> Why are you defending obvious theft?

Where’s the theft?

It’s perfectly normal to have a fee for breaking a lease. And that’s what an annual subscription paid monthly is anyway. It’s a commitment for an extended period of time.

If you could just stop paying and retain the discounted rate, what is an annual subscription vs a monthly one?

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DangitBobby
2 hours ago
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Is upping the fee and automatically confirming the contract without a re-up "perfectly normal"? Seems doubtful.
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anomaly_
1 hour ago
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Yes? Commercial leases (and residential for that matter) commonly have increase clauses that operate automatically (CPI, 3/4/5%, market review, etc).
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whyenot
4 hours ago
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Because it is not obviously theft. If you are getting a discount for making a year-long commitment, and then cancel, breaking that commitment, isn't a cancelation fee appropriate?
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DangitBobby
2 hours ago
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Is that the whole story? Or did you miss literally half of what GP said happened?
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cryzinger
5 hours ago
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If you only need PS in short bursts, may I recommend https://www.photopea.com/?

It's not at 100% feature parity with PS but it's pretty darn close.

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sanswork
5 hours ago
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Appreciate the suggestion but I'm terrible at editing so I just stick with PS because the cost for a month or two when I need it isn't much and it's really easy to find videos walking through exactly what I need to do. Even a single hour spent trying to translate a tutorial would more than wipe out the savings.
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cryzinger
5 hours ago
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Totally fair, I understand :)
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chatmasta
4 hours ago
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No, the complaint with Adobe is that if you cancel, they terminate access immediately rather than at the end of the billing period. There is no explanation for this other than a predatory one; they’re betting you’ll forget to cancel by the time your bill comes around. The immediate termination is effectively depriving you of the next N months of access for which you already paid.
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sanswork
3 hours ago
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This isn't true though. Again like with the annual plan people are confusing things. I just looked it up and checked a few reddit posts to confirm and heres what's happening.

If you cancel in the first 14 days they terminate immediately and refund you. After the 14 days the subscription is cancelled and you keep access until the point you paid for. If you signed up for an annual contract you have a cancel fee of 50% of the remaining agreed amount.

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supern0va
3 hours ago
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>No, the complaint with Adobe is that if you cancel, they terminate access immediately rather than at the end of the billing period. There is no explanation for this other than a predatory one

This is exactly what Shutterstock does. What's maddening is that you can be getting a monthly charge, but are locked into a year contract. If you cancel, they'll continue to charge monthly but without being able to use the service. It's absurd.

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hank9
4 hours ago
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Figma isn't much better these days
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nih567
6 hours ago
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I hope freelancer.com will be the next one. I canceled and renewed my credit card because of them. Even though I deleted my account, they continued to withdraw money.
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x86hacker1010
6 hours ago
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Don’t they charge you to cancel or something? I also remember their suite being absolutely fucking dumb I never used it again
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sanswork
5 hours ago
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They let you sign up for an annual discount but still pay monthly. The cancelation fee is if you try to end the annual commitment early. If you just sign up monthly(seriously always do this when you see these offers) there is no cancellation fee.
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charcircuit
5 hours ago
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Canceling a card isn't the same thing as canceling a subscription. Most businesses will have you still pay via a different payment method to resolve your debt.
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dheera
5 hours ago
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They'll invoice you but don't actually pay. They aren't going to take you to court over a $50/month subscription; the easier route for them is to just disable your account, which is what you wanted anyway.

Never give them your actual residential address (they don't need to know it), birth day, or SSN, or be tricked into giving them such. If they ask on any customer service chat or phone, the answer is they don't need to know it.

Without these things they can't exactly put it on your credit report, either. They may send it to collectors, but don't talk to them. Let them cry. They still won't serve you a court summons over $50.

Keep businesses in check from this money-grabbing behavior. Any kind of subscription should be easily cancellable.

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charcircuit
3 hours ago
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What you are describing is fraud.
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paulddraper
2 hours ago
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From which party?
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charcircuit
1 hour ago
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The customer lying about their information to intentionally bypass companies' anti fraud systems.
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raincole
5 hours ago
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It's a dead company walking anyway. It might be the final blow.
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runako
5 hours ago
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> Shutterstock failed to get consent to charge consumers’ credit cards before charging them for subscriptions

This sounds like it should carry criminal penalties?

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jjtheblunt
4 hours ago
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Conde Nast is _horrible_ this way, tried for a second year in a row to charge me for Wired, which i do not subscribe to, could not explain where they got the idea i did, evidently had access through some dark pattern from years earlier to charge for something i must have bought as a magazine on iOS.

It took hours of online chat argument with the unfortunate real employee fielding such pissed customers, and threats of legal action, eventually citing their legal counsel by email address and full name (from the Conde Nast site), before they agreed to _not_ charge me whatever obscene yearly subscription would be.

They can burn in crooked hell after that nonsense. I wonder if the Reddit people are bothered by their owner, as I had a personally signed generally cheery note from maybe Alexis back when i first subscribed and bought a tshirt, going on 20 years ago i guess.

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runako
18 minutes ago
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> I wonder if the Reddit people are bothered by their owner

Quick note -- Reddit went public in 2024, so Condé Nast is no longer their owner.

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zurtri
4 hours ago
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Well, if you or I did it - of course!

But when Corporate does it, we just handwave it way.

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exabrial
5 hours ago
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Thank you FTC. Next, please go after some monoplies.
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funimpoded
2 hours ago
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Chicago School jerks got their way in the '70s and we effectively decided to stop doing that. This was the first notable fruit yielded by the postwar pro-rich/business "think tank" and intellectualism-washing push which was quickly followed by that set dominating almost everything.

Good luck reversing that and bringing back the "giant enterprises may be assumed harmful" standard (the one under which it was possible to win these cases more than once in a blue moon, without unreasonable costs) now that rich right-wingers just openly steer most news media.

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bch
4 hours ago
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Pardon the pedantry, but I the current abbreviation of the price ("Shutterstock to pay $35M") should be "$35MM".
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