Meal-kit delivery titan HelloFresh has agreed to a substantial $1.35 million settlement to resolve a class-action lawsuit filed in California, putting an end to allegations of widespread deceptive marketing practices.
The legal action, which represents countless subscribers, accused the company of falsely advertising its products as 'fresh' and employing unfair business tactics that trapped customers in difficult-to-cancel subscriptions.
At the Heart of the Controversy
The lawsuit took particular issue with the company's core branding, arguing that the term 'HelloFresh' itself was misleading. It alleged that the company's meal kits were not, in fact, 'fresh' as commonly understood by consumers, but were instead packed with preservatives and designed for a significantly longer shelf life than marketing materials suggested.
Beyond the 'fresh' claims, the suit also targeted the company's subscription model. Customers reported encountering significant obstacles when attempting to cancel their deliveries, a practice often referred to as 'subscription hell'. The suit claimed this was a deliberate strategy to lock users into ongoing payments.
The Terms of the Settlement
While HelloFresh admits no wrongdoing as part of the settlement agreement, the financial terms are clear. The $1.35 million fund will be used to provide payments to eligible class members who purchased HelloFresh meal kits between 8th November 2022 and 29th September 2024.
To submit a claim or for more information on eligibility, consumers are directed to the official settlement website. The final approval hearing for the settlement is scheduled for 17th December 2024 in the US.
A Wider Lesson for the Industry
This case sends a strong signal to the entire subscription-based economy, particularly those companies in the fast-growing meal-kit sector. Regulators and consumers are increasingly scrutinising marketing claims and the ease with which customers can exit recurring payment plans.
For HelloFresh, this settlement represents a costly chapter in its expansion, underscoring the legal risks associated with aggressive marketing and customer retention strategies in the highly competitive food delivery market.
