SAN JOSE — Meal kit maker HelloFresh has agreed to pay a $7.5 million settlement in a consumer protection lawsuit for allegedly making it difficult for consumers to cancel their subscriptions, according to the Santa Clara County District Attorney’s Office.
The lawsuit alleged that the company, which delivers meal kits, did not “clearly and conspicuously” disclose required subscription terms when signing customers up for plans with automatic renewals, according to a press release. It further alleged that the company did not offer an easy cancellation option, provide a proper purchase acknowledgement or get affirmative consent from consumers.
“Misleading automatic renewal subscriptions and false advertising practices don’t sell products – they sell deception,” District Attorney Jeff Rosen said in the news release. “Stop means stop.”
The lawsuit also alleged that HelloFresh did not provide the terms of offers such as free meals or free shipping in violation of California’s Automatic Renewal Law and False Advertising Law, prosecutors said.
Asked for comment, a HelloFresh spokesperson gave a statement: “We take our commitment to customer transparency very seriously, and our subscription model and cancellation policies have been consistently clear to customers throughout the whole customer journey. While we deny any wrongdoing, we have cooperated fully with the coalition of California District Attorneys and have entered into a settlement agreement with them to resolve the matter amicably.”
The settlement includes a $1 million restitution payout to California consumers, prosecutors said. Consumers who are eligible to receive restitution must have been enrolled in an automatic renewal HelloFresh subscription between January 1, 2019 and August 18, 2025. They must have also been charged for the first shipment without consent or knowledge, then canceled the subscription and never received a refund.
Consumers who are eligible for a restitution payout will be contacted by a claims administrator, prosecutors added.
The rest of the settlement is made up of $6.38 million in civil penalties and $120,000 in investigative costs, prosecutors said. The Santa Clara County DA’s office will receive $1.06 million of the penalties to support further enforcement of consumer protection laws.
The civil lawsuit was filed in Santa Clara County Superior Court. The settlement was approved on Thursday by Santa Clara County Superior Court Judge Daniel T. Nishigaya, prosecutors said.
The case was prosecuted by the California Automatic Renewal Task Force, which was led by the district attorney offices of Santa Clara and Los Angeles counties, according to the news release. The task force also includes the San Diego District Attorney’s Office, the Santa Barbara District Attorney’s Office, the Santa Cruz District Attorney’s Office and the Santa Monica City Attorney’s Office.