HelloFresh misled customers, California lawsuit says. Now, company owes millions
HelloFresh misled California customers and made it hard to cancel subscriptions, a lawsuit says.
Now, the popular meal-kit delivery company agreed to pay a $7.5 million settlement, the Santa Clara County District Attorney’s Office said in an Aug. 18 news release.
The Germany-based company is accused of not disclosing “material terms and conditions of advertised free meals, surprise gifts and free shipping offers,” the office said in the release.
“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,” HelloFresh said in a statement to McClatchy News on Aug. 19.
“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.”
What law is the company accused of violating?
Because the company did not clearly disclose their subscription terms or make it easy to cancel subscriptions, the attorney’s office said it violated California’s Automatic Renewal Law and False Advertising Law.
The automatic renewal law is designed to protect consumers and give them full transparency when they agree to a company’s automatic renewal, according to Pollock Cohen LLP.
This includes providing clean and conspicuous disclosure, affirmative consent, an easy cancellation process and renewal notices for long-term contracts.
“Misleading automatic renewal subscriptions and false advertising practices don’t sell products — they sell deception,” District Attorney Jeff Rosen said in the release. “Stop means stop.”
Will customers get paid?
The $7.5 million settlement was approved Aug. 14, the attorney’s office said.
Of that, HelloFresh has to pay $6.38 million in civil penalties, $120,000 to investigative costs and $1 million in restitution to “eligible California consumers.”
Eligible customers were enrolled in automatic renewal subscription from Jan. 1, 2019, to Aug. 18, 2025, the attorney’s office said.
They were then charged for shipment without knowing, then canceled the subscription after the first shipment and didn’t get a refund, the office said.
These customers will get notices from a “third-party claims administrator who will verify claims and distribute restitution proportionally to those eligible to share in the fund,” the DA said.
HelloFresh is based in Berlin, Germany, and it has a main office in New York City.
The company sends pre-portioned ingredients and a recipe for customers to make at home.
This story was originally published August 19, 2025 at 2:41 PM with the headline "HelloFresh misled customers, California lawsuit says. Now, company owes millions."
