Home meal delivery providers HelloFresh and Youfoodz are facing separate proceedings in the Federal Court following allegations that they mislead consumers of subscriptions.

The ACCC alleges that the services, which are both owned by the German-based parent company HelloFresh SE, breached the Australian 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.

“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 of 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.”

Misleading subscriptions

HelloFresh offers weekly meal kits, whereas Youfoodz offers weekly ready-made meals. The ACCC commenced its investigation into both parties in October 2024 after receiving a large number of consumer complaints.

It found that 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.

HelloFresh allegedly carried out this conduct between 1 January 2023 and 14 March 2025, and Youfoodz between 1 October 2022 and 22 November 2024. During these periods, 62,061 HelloFresh customers and 39,408 Youfoodz customers were charged a fee despite cancelling their subscription before the specified cut-off time for the first order.

“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,” Mr Woodward said.

“In the case of HelloFresh, many consumers had not even selected meals but were unknowingly subscribed and charged regardless,” Mr Woodward said.

Individual experiences

In one example, a consumer accessed the HelloFresh website on their phone and entered their payment details to view the menu, but after viewing it, decided not to proceed with a subscription. They did not realise that by saving their payment details, they were already subscribed. They later received a notification via PayPal that they had been charged and found it difficult to contact HelloFresh regarding the payment at a time when they were experiencing financial distress.

In another case, a consumer signed up for a Youfoodz subscription, which they cancelled online within minutes of viewing the menu. They later received a text stating their delivery would arrive the following day and they had been charged. They called Youfoodz multiple times to request a refund and were eventually offered a 50 per cent refund.

“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,” Mr 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.”