Meal kit services sued over alleged subscription traps

Core Viewpoint - The Australian Competition & Consumer Commission (ACCC) has initiated legal proceedings against HelloFresh and Youfoodz for allegedly misleading over 100,000 customers regarding subscription cancellation practices, which are deemed to breach consumer law [1][2][4]. Group 1: Allegations Against Companies - HelloFresh and Youfoodz are accused of misleading advertising that suggested customers could easily cancel subscriptions online before a cut-off time, yet many were charged despite attempting to cancel [2][4]. - The ACCC claims that customers were required to speak with a customer service representative to cancel their subscriptions, contrary to the ease of signing up online [3][4]. - Between January 2023 and March 2023, 62,061 HelloFresh customers and 39,408 Youfoodz customers were charged fees despite cancelling their subscriptions before the cut-off [4]. Group 2: Subscription Practices - The ACCC alleges that HelloFresh required customers to enter payment details to view meals, misleadingly suggesting they would not be charged unless meals were selected, leading to unintended subscription sign-ups [5][6]. - Many consumers were unaware they had subscribed until they received their meal kits or payment notifications [5][6]. - A specific case highlighted a Youfoodz customer who cancelled within minutes of signing up but still received a charge and delivery notification [6][7]. Group 3: Regulatory Response and Future Actions - The ACCC is seeking compensation for affected customers, penalties for the companies, and measures to enhance compliance with consumer laws [7]. - The Albanese government plans to consult on outlawing manipulative subscription practices in early 2026, with legislation expected by the end of that year [8].