Popular meal delivery services HelloFresh and YouFoodz accused of catching customers in ‘subscription traps’
The consumer watchdog is taking meal delivery services HelloFresh and YouFoodz to court for alleged “subscription traps”.
The Australian Competition and Consumer Commission (ACCC) has alleged the services breached 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.
“In fact, 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,” the ACCC said in a statement.
The consumer watchdog is taking meal delivery services HelloFresh and YouFoodz to court for allegedly misleading consumers over subscriptions. (Hello Fresh)
”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.”
The ACCC alleges HelloFresh carried out this conduct between January 1, 2023 and March 14, 2025, and Youfoodz between October 1, 2022 and November 22, 2024.
According to the watchdog, 62,061 HelloFresh customers and 39,408 Youfoodz customers were charged a fee during these periods 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 Australia’s consumer laws,” ACCC Commissioner Luke Woodward said.
“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 HelloFresh required prospective subscribers to provide payment details to view 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.
The ACCC alleged Youfoodz carried out this conduct between October 1 in 2022 and November 22 in 2024. (Nine)
“In fact, 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,” ACCC said.
“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 alleged YouFoodz told consumers who had taken steps to cancel their subscription in their online account settings that the first delivery was not cancelled and they would not be charged.
“In the case of HelloFresh, many consumers had not even selected meals but were unknowingly subscribed and charged regardless,” Woodward said.
“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,” Woodward said.
“We are also urging consumers who are purchasing gifts this festive season to carefully review the contract terms before paying for any subscriptions.”
However the watchdog was told the first delivery could not be cancelled this way and they were still charged.
HelloFresh and YouFoodz has been contacted for comment.
