The Australian Competition and Consumer Commission (ACCC) has recently launched a lawsuit against two meal kit delivery companies, HelloFresh and Youfoodz. The case, filed in Federal Court, accuses the two companies of misleading their customers about the terms of their subscription services.
Both HelloFresh and Youfoodz are subsidiaries of the Germany-based HelloFresh SE. The former provides weekly meal kits while the latter offers pre-made meals on a weekly basis. The ACCC’s contention is that both companies violated Australian consumer law by falsely advertising that new customers could cancel their subscriptions without incurring any charges. In reality, despite cancelling within the specified period, a large number of consumers still faced charges.
According to a representative from ACCC, while it was easy for customers to sign up for the services via websites and mobile applications, the cancellation of the first order required interaction with a customer service representative.
The alleged violations occurred from January 1, 2023, to March 14, 2025, for HelloFresh, and from October 1, 2022, to November 22, 2024, for Youfoodz. The ACCC states that during these periods, “62,061 HelloFresh customers and 39,408 Youfoodz customers were charged a fee despite cancelling their subscription before the specified cut-off time for the first order.”
Moreover, the ACCC claims that HelloFresh required customers to provide payment details to access the full menu, but assured them during the sign-up process that they wouldn’t be charged unless they selected meals. However, in contrast to its promise, several customers were charged. Similarly, Youfoodz informed customers who had initiated their subscription’s cancellation that their first delivery was cancelled and they won’t be charged, which turned out not to be true.
The ACCC initiated the investigation into these allegations against HelloFresh and Youfoodz in October 2024, following numerous complaints from consumers. The commissioner, Luke Woodward, expressed that businesses employing confusing and complicated subscription cancellation policies are a significant public concern. He emphasized that the ACCC would take enforcement action as necessary when there’s evidence of violations of the Australian consumer law and consumer harm.
What is the ACCC’s contention against HelloFresh and Youfoodz?
The ACCC alleges that both companies violated Australian consumer law by falsely advertising that new customers could cancel their subscriptions without any charges. In reality, many customers incurred charges despite cancelling within the specified period.
What were the periods during which these alleged violations occurred?
For HelloFresh, the alleged violations occurred from January 1, 2023, to March 14, 2025. For Youfoodz, the violations are said to have taken place from October 1, 2022, to November 22, 2024.
What does the ACCC plan to do about businesses with confusing and complicated subscription cancellation policies?
The ACCC commissioner, Luke Woodward, stated that when there is evidence of breaches of the Australian consumer law and consumer harm, the ACCC will take enforcement action as necessary.
