Hello Fresh ordered to pay $7.5 million to settle CA lawsuit over 'deceptive subscription practices'
The lawsuit claims the meal kit delivery company enrolled people into subscription plans without their consent.
LOS ANGELES (KABC) -- HelloFresh, the world's largest meal kit delivery company, has been ordered to pay $7.5 million to settle a civil lawsuit that claims the company enrolled people into subscription plans without their consent.
The lawsuit, which was led by the Los Angeles County District Attorney's Consumer Protection Division and the Santa Clara County District Attorney's Office, claims HelloFresh violated California's Automatic Renewal Law by "deceptively enrolling consumers into auto-renewing subscription plans without proper disclosure or consent."
People were allegedly also enrolled in ongoing payment plans that were difficult to terminate, according to the DA's office.
"No company no matter how big or well-known is exempt from California's consumer protection laws," said L.A. County District Attorney Nathan Hochman in a statement. "We will aggressively pursue enforcement when businesses take advantage of consumers by failing to clearly disclose subscription terms, obtain proper consent, or provide a fair way to cancel. Consumers have a right to know what they're signing up for, and they deserve better. Digital deception is still deception under the law."
HelloFresh was also ordered to pay $120,000 in investigative costs and $1 million in restitution that will be distributed to eligible California consumers.
HelloFresh, which occupies about 75% of the U.S. meal kit delivery market, according to the DA's office, is headquartered in Germany.
The company did not admit liability in the settlement.
