Overview
Home meal delivery providers HelloFresh and Youfoodz are in hot water with the Australian Competition and Consumer Commission (ACCC), with the popular services accused of misleading customers over their subscription and cancellation terms.
With legal proceedings underway, the ACCC claims that both HelloFresh and Youfoodz breached Australian Consumer Law by advertising that consumers could easily cancel subscriptions using their online account settings before a specified cut-off time.
However, the watchdog suggests the reality was much different, with consumers only able to cancel the first delivery if they spoke with a customer service representative. Meanwhile, the ACCC statement says many customers were still charged for their first delivery after they'd attempted to cancel.
"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," said ACCC Commissioner Luke Woodward.
There were also widespread complaints about customers unknowingly signing up for subscriptions. Here, the ACCC alleges that HelloFresh required consumers to provide payment details to view the service's meal selection. When consumers visited the page, they were unaware they had entered into an ongoing subscription and were charged for a first delivery.
Following the Australian government's recent announcement of a crackdown on misleading cancellation policies and so-called subscription traps, draft legislation is expected to arrive in early 2026. In the meantime, the ACCC is seeking compensation orders for affected consumers from HelloFresh and YouFoodz.
For more information, head to the ACCC website to read the full statement.