HelloFresh agrees to $7.5M settlement in California

SAN FRANCISCO (KRON) — Meal kit delivery service HelloFresh will pay $1 million to eligible Californians as part of a $7.5 million settlement over allegations that the company misled consumers and made it difficult to cancel subscriptions, the Santa Clara County District Attorney’s Office announced Monday.

According to the DA’s office, a civil complaint “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 company was also accused of not disclosing material terms and conditions of advertised free meals, surprise gifts and free shipping offers, the DA’s office said. The alleged practices violate California’s Automatic Renewal Law and False Advertising Law.

“Misleading automatic renewal subscriptions and false advertising practices don’t sell products – they sell deception,” Santa Clara County District Attorney Jeff Rosen said in a statement.

The $7.5 million settlement will be divvied up with $6.38 million going toward civil penalties, $120,000 for investigative costs and $1 million being paid to eligible California consumers. Of the $6.38 million, the Santa Clara County District Attorney’s Office will receive $1,063,334.

“Eligible California consumers include those who were enrolled in an automatic renewal product subscription between January 1, 2019, through August 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,” the DA’s office said.

Notices to eligible consumers will be sent out by a third-party claims administrator.