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HelloFresh and Youfoodz in Legal Hot Water Over Alleged Deceptive Subscription Practices
Retail News Asia· 2025-12-16 05:01
Core Viewpoint - The Australian Competition and Consumer Commission (ACCC) has filed a lawsuit against HelloFresh and Youfoodz for misleading customers regarding subscription cancellation terms [1] Alleged Misrepresentation of Subscription Cancellation - ACCC claims both companies violated Australian consumer law by falsely advertising that new customers could cancel subscriptions without charges, while many still faced fees despite timely cancellations [2][6] - HelloFresh and Youfoodz are subsidiaries of Germany-based HelloFresh SE, with HelloFresh providing weekly meal kits and Youfoodz offering pre-made meals [2] Charges Despite Cancellation - Alleged violations for HelloFresh occurred from January 1, 2023, to March 14, 2025, affecting 62,061 customers, while Youfoodz's violations spanned from October 1, 2022, to November 22, 2024, impacting 39,408 customers [4][7] - HelloFresh required payment details to access the menu but charged customers despite assurances that they wouldn't be charged unless meals were selected [4] - Youfoodz misled customers about cancellation, stating that their first delivery was cancelled and they wouldn't be charged, which was not the case [4] Investigation and Public Concern - ACCC began investigating these allegations in October 2024 after receiving numerous consumer complaints [5] - ACCC commissioner Luke Woodward highlighted the public concern regarding confusing subscription cancellation policies and stated that enforcement action would be taken if violations and consumer harm were evident [5][8]