HelloFresh agreed to a $7.5 million settlement in a consumer protection lawsuit alleging deceptive subscription and advertising practices. Prosecutors said HelloFresh failed to disclose material terms of advertised free meals, surprise gifts, and free shipping, and made cancellations difficult, violating California's Automatic Renewal Law and False Advertising Law. The Santa Clara and Los Angeles district attorneys led the California Automatic Renewal Task Force alongside several county offices and the Santa Monica City Attorney. The settlement, approved Aug. 14 by a Santa Clara County Superior Court judge, requires $6.38 million in civil penalties, $120,000 in investigative costs, and $1 million in restitution to eligible California consumers enrolled between Jan. 1, 2019, and Aug. 18, 2025.
Prosecutors said that HomeFresh, the largest meal delivery firm in the U.S., also failed to disclose the material terms and conditions of advertised free meals, surprise gifts, and free shipping offers, among other false and misleading advertising allegations. These actions are violations of California's Automatic Renewal Law and False Advertising Law, they said.
"Misleading automatic renewal subscriptions and false advertising practices don't sell products - they sell deception," District Attorney Jeff Rosen said. "Stop means stop."
The settlement was approved on Aug. 14 by Santa Clara County Superior Court Judge Daniel T. Nishigaya. As part of the settlement, HelloFresh will pay $6.38 million in civil penalties, $120,000 in investigative costs, and $1 million in restitution to eligible California consumers. Eligible California consumers include those who were enrolled in an automatic renewal product subscription between Jan. 1, 2019, through Aug. 18, 2025, charged for the first shipment without their knowledge or
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