The Brief
HelloFresh has been ordered to pay $7.5 million to settle a civil lawsuit.
According to the Santa Clara County District Attorney’s Office, HelloFresh misled consumers and made it difficult for them to cancel their subscriptions.
Eligible California consumers will be able to receive compensation.
LOS ANGELES - The popular meal kit delivery company, HelloFresh, has been ordered to pay $7.5 million to settle a civil lawsuit alleging the company violated California’s Automatic Renewal Law.
What we know
The lawsuit, which was jointly filed by the Los Angeles County District Attorney’s Consumer Protection Division and the Santa Clara County District Attorney’s Office, alleged that HelloFresh misled California consumers into ongoing subscription charges without adequate notice or authorization.
According to LA County DA Nathan Hochman, HelloFresh deceptively enrolled customers into its auto-renewing subscription plans without proper consent or fully disclosing it to customers.
They also allegedly failed to disclose the material terms and conditions of advertised free meals, surprise gifts, and free shipping offers, according to the Santa Clara County District Attorney’s Office.
As part of the settlement, which was approved on August 14, HelloFresh will pay $6.38 million in civil penalties, $120,000 in investigative costs, and $1 million in restitution to eligible California consumers.
People who may be eligible for compensation
Eligible California consumers include:
Those who were enrolled in an automatic renewal subscription between January 1, 2019, through August 18, 2025.
Those who were charged for the first shipment without their knowledge or consent, canceled their automatic renewal product subscription after the first shipment, and never received a refund from HelloFresh.
Notices will be sent to eligible consumers by a third-party claims administrator, the DA's office explained.
What they're saying
"No company no matter how big or well-known is exempt from California's consumer protection laws. We will aggressively pursue enforcement when businesses take advantage of consumers by failing to clearly disclose subscription terms, obtain proper consent, or provide a fair way to cancel. Consumers have a right to know what they're signing up for, and they deserve better. Digital deception is still deception under the law," DA Hochman wrote in a statement posted online.
The Source
Information for this story came from statements provided by the Santa Clara County District Attorney’s Office and the LA County District Attorney's Office.
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