Getty forced to refund Australian customers for misleading iStock charges
Getty Images will refund more than 200 disgruntled customers after imposing iStock cancellation charges that the Australian Competition and Consumer Commission (ACCC) alleges “were greater than those outlined in its online terms and conditions”.
In a statement released on Friday, the ACCC alleges 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 actuality, customers were charged 50% of the remaining cost of the customer’s annual subscription. These extra charges totalled roughly $78,000.
“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”, and identified statements on the iStock website which listed the monthly price of annual subscriptions without stating the total price. The watchdog found this pricing “may have contributed to consumer confusion about the term of the subscriptions”.
“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,” Carver said.
“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.”
A Getty Images spokesperson told Mumbrella:
“Getty Images worked actively with the ACCC to address concerns related to our iStock Free Trial program and are actively working to refund impacted customers.
“We are committed to providing a transparent and positive experience for our customers and will continue to take steps to improve our offerings in line with best practices and regulatory expectations.”
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Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
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