HelloFresh Faces Sentencing for “Subscription Trap” Tactics
Meal Kit Giant Accused of Misleading Customers
Meal kit delivery service HelloFresh is set to be sentenced on October 16 for engaging in a “subscription trap” scheme, misleading customers into continuing paid subscriptions.
Commerce Commission Takes Action
The Commerce Commission has brought charges against HelloFresh for conduct that occurred between February 2022 and July 2023. Submissions on the sentencing are due from the Commerce Commission by September 22 and from HelloFresh by October 7.
Customer Complaints Spark Investigation
Investigations were launched after the Commerce Commission received numerous complaints regarding HelloFresh’s practices related to customer sign-ups, cancellations, and subscription reactivations. Many customers reported being automatically charged for meal kit boxes they believed they had skipped.
“Taking payment for services customers aren’t aware they’re buying or have not agreed to purchase is unacceptable behaviour,” stated the commission’s deputy chair **Anne Callinan** when the charges were filed. She added, “In these calls, it was not made clear to some customers that if they accepted a discount voucher offered, their subscription would be reactivated, and their bank account would be debited.”
The commission highlighted its priority on combating illegal online sales practices, including subscription traps where consumers are unknowingly lured into paid subscriptions.
Past Customer Experiences
One customer, **Fiona Goodin**, recounted a distressing experience in 2023, describing aggressive advertising calls from HelloFresh shortly after Cyclone Gabrielle. At the time, HelloFresh stated it was enhancing team training to prevent intrusive calls, especially in cyclone-affected regions.
Consumer NZ also reported a surge in complaints about HelloFresh in early 2023, with customers expressing frustration over unexpected charges. Similarly, Australia’s Consumer Policy Research Centre found that a significant majority of Australians (three out of four) had a negative experience attempting to cancel a subscription.
Globally, subscription services often face scrutiny for practices that exploit customer inertia or forgetfulness. For example, a 2023 report by the UK’s Competition and Markets Authority found that a quarter of consumers surveyed had difficulty cancelling a subscription service, leading to potential financial loss (CMA, 2023).
