In joint statements from the district attorney's offices of Los Angeles and Santa Clara counties, which co-led the lawsuit, prosecutors said HelloFresh violated California's Automatic Renewal Law by deceptively enrolling consumers into auto-renewing subscription plans without proper disclosure or consent.
HelloFresh, based in Germany, is the largest meal kit delivery company in the U.S. with an approximate 75% market share.
"Misleading automatic renewal subscriptions and false advertising practices don't sell products - they sell deception," said District Attorney Jeff Rosen in a prepared statement. "Stop means stop."
In a statement to CBS News Bay Area, a HelloFresh spokesperson said,
HelloFresh customers who are eligible to take part in the restitution fund include those who were:
enrolled in an automatic renewal product subscription between January 1, 2019, through August 18, 2025charged for the first shipment without their knowledge or consentcancelled their automatic renewal product subscription after the first shipment, and never received a refund from HelloFresh.Prosectors in the lawsuit also included the district attorney's offices of San Diego, Santa Barbara, and Santa Cruz counties, as well as the Santa Monica City Attorney's Office. Those offices, along with those of Santa Clara and Los Angeles counties, comprise the California Automatic Renewal Task Force, established in 2015 to address rising consumer complaints about subscription-based traps.
The DA's office will split the $6.38 million in civil penalties to be used to support future enforcement of consumer protection laws, prosecutors said.
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