HelloFresh, the meal kit delivery company, has settled a lawsuit over allegedly misleading consumers brought by the Santa Clara County District Attorney’s Office for $7.5 million.  

The suit alleged HelloFresh made false and misleading allegations in its advertising, including failing to disclose material terms and current conditions, and that the company made it unreasonably hard for consumers to unsubscribe from services.

“Misleading automatic renewal subscriptions and false advertising practices don’t sell products – they sell deception,” said Jeff Rosen, the Santa Clara County District Attorney. 

The company’s deceptive actions, in which consumers struggle to find subscription cancellation, violated California’s Automatic Renewal Law and False Advertising Law.

The Santa Clara County Superior Court received the civil complaint, which claimed that the company inadequately disclosed essential subscription terms before automatically renewing customers’ subscriptions. 

The action on subscription of HelloFresh involves violating consumers’ consent, failing to provide consumers with the proper post-purchase acknowledgement, and not offering seamless cancellation methods.

As part of the settlement, the company will pay $6.38 million in civil penalties, $120,000 in investigative costs, and $1 million in restitution to eligible California consumers.