The lawsuit, filed by the California Automatic Renewal Task Force, claimed HelloFresh failed to clearly disclose subscription terms, obtain proper consumer consent, among other allegations
Meal kit delivery service HelloFresh will pay $7.5 million to settle a consumer protection lawsuit alleging violations of California’s Automatic Renewal Law, with the Santa Monica City Attorney’s Office playing a role in the enforcement, officials announced.
The lawsuit, filed by the California Automatic Renewal Task Force, which includes the Santa Monica City Attorney’s Office alongside district attorneys from Los Angeles, San Diego, Santa Barbara, Santa Clara, and Santa Cruz counties, claimed HelloFresh failed to clearly disclose subscription terms, obtain proper consumer consent, or provide an easy cancellation process for its auto-renewing plans. The suit also alleged violations of California’s False Advertising Law by not properly disclosing terms for offers like free meals or shipping, according to a statement from the Santa Clara County District Attorney’s Office cited by Mercury News.
Santa Monica City Attorney Doug Sloan emphasized the importance of transparency in subscription services. “Consumers in Santa Monica and across California deserve clear information about autorenewal plans and the right to consent to those terms,” Sloan said.
The settlement, approved Thursday by Santa Clara County Superior Court Judge Daniel T. Nishigaya, includes $1 million in restitution for eligible California customers who were charged for their first HelloFresh shipment without consent between January 1, 2019, and August 18, 2025, and canceled without a refund.
A claims administrator will contact eligible consumers, prosecutors said. The remaining $6.38 million covers civil penalties, with $1.06 million allocated to Santa Clara County for consumer protection enforcement, and $120,000 for investigative costs, per Mercury News
