HelloFresh, the largest meal kit delivery service in the U.S., has agreed to pay approximately $7.5 million to settle a consumer protection lawsuit alleging that it violated the California Automatic Renewal Law.
The lawsuit alleged that HelloFresh enrolled consumers in automatically renewing subscription plans without properly disclosing the terms of the plans and without properly obtaining consent to those terms. The court approved a stipulated judgment that requires HelloFresh to obey applicable laws and to pay restitution, civil penalties and investigative costs.
“Consumers who sign up for autorenewal services have a right to know the terms of the plan and decide for themselves if they want to consent to those terms,” said Santa Monica City Attorney Doug Sloan. “The City Attorney’s Office, in partnership with the California Automatic Renewal Task Force, is proud to enforce this right for consumers in Santa Monica and throughout California.”
The lawsuit was filed by members of the California Automatic Renewal Task Force (“CART”), which includes the Santa Monica City Attorney’s Office and the District Attorney’s Offices of Los Angeles County, San Diego County, Santa Barbara County, Santa Clara County and Santa Cruz County.
HelloFresh did not admit liability in the settlement.
