The Santa Clara County District Attorney’s Office has obtained a $7.5 million settlement in a consumer protection lawsuit filed against meal delivery company HelloFresh for misleading consumers and making it difficult for them to cancel their subscriptions.
Prosecutors said that HomeFresh, the largest meal delivery firm in the U.S., also failed to disclose the material terms and conditions of advertised free meals, surprise gifts, and free shipping offers, among other false and misleading advertising allegations. These actions are violations of California’s Automatic Renewal Law and False Advertising Law, they said.
“Misleading automatic renewal subscriptions and false advertising practices don’t sell products – they sell deception,” District Attorney Jeff Rosen said. “Stop means stop.”
The Santa Clara County and Los Angeles County district attorney’s offices led the case for the California Automatic Renewal Task Force, which also includes the district attorney offices of San Diego, Santa Barbara, and Santa Cruz counties, as well as the Santa Monica City Attorney’s Office.
The civil complaint filed in Santa Clara County Superior Court alleged that HelloFresh did not clearly and conspicuously disclose the required subscription terms before enrolling consumers in automatic renewal product subscriptions, obtaining consumers’ affirmative consent, providing consumers with the proper post-purchase acknowledgement, and offering an easy-to-use mechanism for cancellation.
The settlement was approved on Aug. 14 by Santa Clara County Superior Court Judge Daniel T. Nishigaya. As part of the settlement, HelloFresh will pay $6.38 million in civil penalties, $120,000 in investigative costs, and $1 million in restitution to eligible California consumers.
Eligible California consumers include those who were enrolled in an automatic renewal product subscription between Jan. 1, 2019, through Aug. 18, 2025, charged for the first shipment without their knowledge or consent, cancelled 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 who will verify claims and distribute restitution proportionally to those eligible to share in the fund.
The DA’s Office received $1,063,334 of the $6.38 million in civil penalties, and said which will be used to support future enforcement of consumer protection laws.
