ACCC takes HelloFresh, Youfoodz to court for allegedly misleading consumers over subscriptions

Australia's consumer watchdog has filed legal proceedings against HelloFresh and Youfoodz alleging they caught tens of thousands of people in subscription traps, claiming consumers could easily unsubscribe online when they could actually only do so by speaking to a customer service representative.

The separate filings made against meal kit group Grocery Delivery E-Services Australia Pty Ltd, trading as HelloFresh, and ready-made meal delivery company Youfoodz Pty Ltd, allege the companies misled consumers over subscriptions.

Both companies are owned by Berlin-based HelloFresh SE, which acquired Australia-born Youfoodz in 2021 following a short-lived stint as an ASX-listed company.

The ACCC alleges the companies breached the Australian Consumer Law by advertising on their websites and apps that new customers could easily cancel subscriptions through their online account settings, as long as they did so before a specified cut-off time.

The watchdog's investigations found that when many consumers tried to cancel their subscription online prior to the first delivery cut-off time, they were still charged for and received the first order.

It claims that despite being able to sign up easily through the websites and apps, consumers were only able to cancel the first delivery if they spoke with a customer service representative.

HelloFresh allegedly carried out this conduct between 1 January 2023 and 14 March 2025, and Youfoodz between 1 October 2022 and 22 November 2024. 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.

“We’ve brought these two cases because we allege that HelloFresh’s and Youfoodz’s conduct involved a suite of confusing and unclear subscription practices in breach of Australia’s consumer laws,” says ACCC Commissioner Luke Woodward. 

“Despite what HelloFresh and Youfoodz represented to new Australian subscribers, tens of thousands of consumers were charged for their first order, even though they cancelled their subscription before the cut-off date.”

The ACCC also alleges that HelloFresh required consumers to provide payment details to view and select meals from the full menu, but represented to them in the sign-up process that they would not be charged unless they selected meals from the menu. However, when consumers clicked the button to progress to the meal selection screens, they were entered into an ongoing subscription and charged for the first delivery.

The regulator claims many HelloFresh consumers were not even aware that they had been signed up to an ongoing subscription until they received a delivery or payment notification.

The ACCC also alleges that Youfoodz communicated to consumers who had taken steps to cancel their subscription in their online account settings that the first delivery was cancelled and they would not be charged, when in fact the first delivery could not be cancelled this way and they were still charged.

“In the case of HelloFresh, many consumers had not even selected meals but were unknowingly subscribed and charged regardless,” Woodward says.

“Traders must clearly communicate when consumers are signing up for a subscription, as well as how they are able to cancel and avoid being charged.

“Businesses using confusing and complicated subscription cancellation policies is a matter of significant public concern and, where there is evidence of breaches of the Australian Consumer Law and consumer harm, the ACCC will take enforcement action when appropriate."

In a response, a spokesperson for HelloFresh says the group is "dedicated to providing a fair, transparent, and enjoyable experience for everyone using our service".

"Our goal is to build long-term relationships with our customers, and we have designed our subscription offering to be flexible and with no lock-in contracts. We have no intention to confuse customers into accepting an unwanted first delivery, and there is no benefit to our brand or business," the spokesperson says.

"The HelloFresh Group takes the ACCC's claims seriously and remains committed to putting our customers' needs first. We will continue to engage constructively with the ACCC to meet the needs of consumers. As this matter is now before the Court, we will not be providing further comment at this time."

The ACCC Commissioner urges consumers who are buying gifts this festive season to carefully review the contract terms before paying for any subscriptions.

Consumer and fair trading issues in the digital economy and in the supermarket and retail sectors are among the ACCC’s current 2025-26 Enforcement Priorities.

The ACCC is seeking compensation orders for affected consumers, penalties, declarations, publication orders, the implementation of a compliance program, and costs.

The watchdog commenced its investigation into HelloFresh and Youfoodz in October 2024 after receiving a large number of consumer complaints.