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Online stock photography company Getty Images has committed to refunding about $78,000 to more than 200 customers, after imposing charges for cancellation of iStock subscriptions which the ACCC alleges were greater than those outlined in its online terms and conditions.
The ACCC was concerned that between November 2023 and February 2024, Getty Images may have misled customers by stating in its online iStock terms and conditions that cancelling a subscription after a one-month free trial period would only incur an "administrative charge".
In fact, this charge amounted to 50 per cent of the remaining cost of the customer's annual subscription and could not be fully explained by the administrative costs of processing the cancellation.
"We were concerned that Getty Images was charging more than customers would have reasonably expected to cancel their paid annual subscription after a one-month free trial, having regard to its online iStock terms and conditions," ACCC Commissioner Liza Carver said.
The ACCC acted after receiving a significant increase in consumer complaints about iStock, including the amount payable when cancelling subscriptions.
The ACCC also identified concerns about statements on the iStock website which listed the monthly price of annual subscriptions without stating the total price. This pricing may have contributed to consumer confusion about the term of the subscriptions. Getty Images has now amended these statements.
The ACCC is pleased Getty Images has made changes to improve iStock customers' experiences by amending its pricing pages and now notifying customers of the upcoming end of their free trial.
"Getty Images was responsive to customer feedback and to the ACCC's concerns in agreeing to provide refunds to its customers and amend its iStock website, so the ACCC does not propose to take further enforcement action."
"Businesses must clearly and accurately state the total price and key terms and conditions, such as the length of the subscription and cancellation terms, from the outset when selling subscription-based products."
Consumer redress is available
Getty Images will shortly email affected customers to notify them of the refund they will receive. Getty will then process refunds for affected customers based on existing customer information where possible.
If the automatic refund transaction is rejected, Getty Images will notify those individuals by email. To prevent exploitation by scammers, those individuals should contact Getty Images on the customer service phone number listed below.
Advice for consumers
Do not respond to unsolicited contact from parties seeking to update your payment details online or over the phone. Find contact details for Getty Images through your own independent searches or use the details listed below.
