HelloFresh – the world’s biggest meal kit company – has been ordered to pay $7.5 million after a US court found it made subscriptions hard to cancel.
The penalty follows a lawsuit in California, where prosecutors accused HelloFresh of misleading customers into auto-renewing meal plans and putting barriers in the way of cancelling. Los Angeles County District Attorney Nathan Hochman said the case was a warning shot for all companies who charge unfair subscription practices.
HelloFresh, which controls about three-quarters of the US meal kit market, denied wrongdoing but said it had worked with prosecutors to resolve the case.
Why this matters for UK consumers
Subscription traps aren’t just an American problem. UK regulators have long warned about companies that make it easy to sign up but far harder to cancel.
According to the government website, nearly 10 million active subscriptions in the UK are unwanted. Costing consumers £14 per month per subscription, and a staggering £1.6 billion annually.
The Digital Markets, Competition and Consumers Act 2024 has now banned subscription traps, with penalties of up to 10% of a company’s global turnover for offenders. The government is also consulting on new rules to make cancellation genuinely simple, ensure clear reminders before renewals, and extend cooling-off rights to auto-renewed contracts.
The message is clear: whether it’s meal kits, streaming services, or gym memberships, businesses must treat customers fairly. And those that don’t could face serious consequences.
Stay informed
Join the Claim keeps a close eye on cases like this. If group action opportunities open up in the UK, we’ll make sure you hear about them first.
