HelloFresh, the world’s largest meal-kit delivery company, will pay $7.5 million to settle allegations that it illegally locked customers into auto-renewing subscriptions, according to the Santa Barbara County District Attorney’s Office.
The lawsuit, brought by a coalition of California prosecutors including Santa Barbara, accused the company of violating the state’s Automatic Renewal Law by failing to clearly disclose subscription terms, secure proper consent, and make cancellations straightforward. Prosecutors also pointed to misleading advertising around “free meals” and surprise gifts.
As part of the settlement, HelloFresh will pay $6.38 million in civil penalties, $120,000 in investigative costs, and $1 million in restitution to eligible California consumers. Those eligible include customers who were charged for their first shipment between January 1, 2019, and August 18, 2025, without knowingly enrolling, canceled after the first box, and never received a refund. Notices will be sent by a third-party administrator.
Santa Barbara County will receive more than $1 million from the settlement to fund future consumer protection enforcement.
In an emailed statement, Abigail Dreher, associate director of corporate communications at HelloFresh, said the company “denies any wrongdoing” but chose to settle in order to resolve the matter. “We take our commitment to customer transparency very seriously, and our subscription model and cancellation policies have been consistently clear to customers throughout the whole customer journey,” Dreher said.
District Attorney John Savrnoch countered that the case shows even global companies must play by state rules. “The Automatic Renewal Laws exist to ensure that consumers are not deceived when making everyday purchases for items like meal kits,” he said in a press release. “Cases like these demonstrate that even the largest companies will be held accountable.”
