HelloFresh Faces $7.5M Lawsuit: Were You Tricked into a Subscription? – Consumer Protection Rights

HelloFresh Faces $7.5M Lawsuit: Were You Tricked into a Subscription? – Consumer Protection Rights

Did you sign up for HelloFresh expecting convenient meal kits, only to find yourself trapped in a recurring subscription you couldn’t easily escape? You’re not alone. In a landmark case highlighting the importance of consumer protection rights, HelloFresh, the world’s largest meal kit delivery company, has been ordered to pay $7.5 million to settle a lawsuit accusing the company of deceptive subscription practices. This legal action underscores the need for transparency and fairness in subscription services, ensuring consumers aren’t unknowingly locked into unwanted and difficult-to-cancel plans.

The Heart of the Lawsuit: Automatic Renewal Law Violations

The lawsuit, jointly led by the Los Angeles County District Attorney’s Consumer Protection Division and the Santa Clara County District Attorney’s Office, alleged that HelloFresh violated California’s Automatic Renewal Law (ARL) and False Advertising Law. Prosecutors argued that HelloFresh deceptively enrolled consumers into auto-renewing subscription plans without proper disclosure or consent. This meant customers were often unaware that they were signing up for a recurring service with ongoing charges.

Specifically, the complaint stated that HelloFresh failed to:

  • Clearly and conspicuously disclose its subscription terms before collecting payment.
  • Obtain consumers’ affirmative consent before charging their credit or debit cards.
  • Provide a post-transaction acknowledgment containing the material terms of the subscription.
  • Offer an easy-to-use mechanism for cancellation.

These alleged practices resulted in consumers being unknowingly enrolled in ongoing payment plans that were difficult to terminate, leading to frustration and financial harm.

“Digital Deception is Still Deception Under the Law”

“No company, no matter how big or well-known, is exempt from California’s consumer protection laws,” stated Los Angeles County District Attorney Nathan J. Hochman. “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.”

This sentiment is echoed by Santa Clara County District Attorney Jeff Rosen, who stated, “Misleading automatic renewal subscriptions and false advertising practices don’t sell products – they sell deception. Stop means stop.”

The Settlement: Penalties and Restitution

The settlement, approved by Santa Clara County Superior Court Judge Daniel T. Nishigaya, includes:

  • $6.38 million in civil penalties: This portion of the settlement will be distributed among the district attorney offices involved and used to support future enforcement of consumer protection laws.
  • $120,000 in investigative costs: This covers the expenses incurred during the investigation of HelloFresh’s practices.
  • $1 million in restitution to eligible California consumers: This fund will provide compensation to consumers who were harmed by HelloFresh’s alleged deceptive practices.

Are You Eligible for Restitution?

If you are a California consumer who believes you were tricked into a HelloFresh subscription, you may be eligible for restitution from the $1 million fund. To be eligible, you must meet the following criteria:

  1. Enrolled in an automatic renewal product subscription between January 1, 2019, and August 18, 2025.
  2. Charged for the first shipment without your knowledge or consent.
  3. Cancelled your automatic renewal product subscription after the first shipment.
  4. Never received a refund from HelloFresh.

Notices will be sent to eligible consumers by a third-party claims administrator, who will verify claims and distribute restitution proportionally to those eligible to share in the fund.

The California Automatic Renewal Task Force (CART)

This case is one of the ongoing investigations conducted by the California Automatic Renewal Task Force (CART). CART was established by the Los Angeles County District Attorney’s Office in 2015 to address rising consumer complaints about subscription-based traps. The task force includes district attorney’s offices from Los Angeles, San Diego, Santa Barbara, Santa Cruz counties, and the Santa Monica City Attorney’s Office.

CART’s mission is to protect consumers from deceptive subscription practices by enforcing the ARL and other consumer protection laws. The HelloFresh settlement is a significant victory for CART and a warning to other companies that engage in similar practices.

Understanding Your Consumer Protection Rights

This case highlights the importance of understanding your consumer protection rights, especially when it comes to subscription services. Here are some key things to keep in mind:

  • Read the fine print: Before signing up for any subscription service, carefully read the terms and conditions, including the automatic renewal policy and cancellation procedures.
  • Look for clear disclosures: Companies must clearly and conspicuously disclose all material terms of the subscription before you agree to it.
  • Give affirmative consent: You should be required to take an affirmative action, such as checking a box or clicking a button, to consent to the automatic renewal terms.
  • Keep records: Save copies of your subscription agreement, confirmation emails, and any other relevant documents.
  • Know your cancellation rights: You have the right to cancel your subscription at any time, and the cancellation process should be easy to understand and complete.

The Future of Subscription Services: “Click to Cancel” and Beyond

The HelloFresh lawsuit and other similar cases are driving a push for stronger consumer protection laws related to subscription services. One key reform is the “click-to-cancel” rule, which would require companies to make it as easy to cancel a subscription as it is to sign up for one.

While a federal “click-to-cancel” rule was struck down by a US federal appeals court in July 2025, many states are considering or have already passed similar laws. California’s updated Automatic Renewal Law states that subscribers should be allowed to cancel “without any further steps that obstruct or delay the consumer’s ability to terminate the automatic renewal or continuous service immediately.”

These legal changes, along with increased scrutiny from consumer protection agencies, are pushing companies to adopt more transparent and consumer-friendly subscription practices.

Were You Tricked? What to Do Next

If you believe you were tricked into a HelloFresh subscription or have experienced difficulty cancelling, here are some steps you can take:

  1. Contact HelloFresh: Attempt to resolve the issue directly with HelloFresh’s customer service department. Document all communications.
  2. File a complaint: File a complaint with the Federal Trade Commission (FTC) or your state’s Attorney General’s office.
  3. Check Eligibility for Restitution: If you are a California resident and meet the criteria mentioned above, keep an eye out for a notice from the third-party claims administrator regarding the HelloFresh settlement.
  4. Consult with a Consumer Protection Lawyer: If you have suffered significant financial harm or are unable to resolve the issue on your own, consider consulting with a consumer protection lawyer to explore your legal options.

The HelloFresh case serves as a reminder that companies must be transparent and fair in their subscription practices. By understanding your consumer protection rights and taking action when those rights are violated, you can help ensure a more equitable marketplace for all.