ACCC Sues HelloFresh and Youfoodz Over Alleged 'Subscription Trap' Charges
The regulator says more than 100,000 customers were billed despite cancelling before the first-delivery cut-off.
Overview
- The ACCC filed separate Federal Court actions on December 16 against E‑Service Australia (HelloFresh) and Youfoodz over alleged misleading subscription designs.
- HelloFresh's alleged conduct is dated from January 1, 2023 to March 14, 2025, while Youfoodz's alleged conduct is dated from October 1, 2022 to November 22, 2024.
- The watchdog alleges online cancellations did not stop first deliveries from being charged and that many customers could only avoid charges by speaking to a customer service representative.
- The ACCC also alleges HelloFresh required payment details to view menus while stating customers would not be charged unless meals were selected, yet some were subscribed and billed without choosing meals.
- Approximately 62,061 HelloFresh customers and 39,408 Youfoodz customers were allegedly charged in this way, and reporting notes HelloFresh previously received a NZ$845,000 fine in New Zealand for separate misleading conduct.