The ACCC has commenced Federal Court proceedings today against HelloFresh and Youfoodz, accusing the meal-kit giants of misleading tens of thousands of Australians about how easy it was to cancel their subscriptions – and charging them anyway.
The regulator alleges the companies, both owned by Germany-based HelloFresh SE, breached Australian Consumer Law by telling new customers they could cancel online before a cut-off time, when in reality many were still charged for – and received – their first delivery unless they spoke directly with customer service.
The case lands squarely in the middle of growing regulatory scrutiny of subscription models, particularly those that promise frictionless sign-ups while burying the exits.
‘Confusing and unclear’ cancellation practices
According to the ACCC, HelloFresh and Youfoodz promoted subscription cancellation as simple and fully digital across their websites and apps.
But for many consumers, that promise didn’t match reality.
HelloFresh is alleged to have engaged in the conduct between 1 January 2023 and 14 March 2025, during which time 62,061 customers were charged despite cancelling before the first delivery cut-off.
Youfoodz allegedly did the same between 1 October 2022 and 22 November 2024, affecting 39,408 customers.
“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.”
Easy in, hard out
The ACCC claims that while signing up for both services was quick and seamless, cancelling the first delivery often wasn’t.
In many cases, consumers could stop the first delivery – and avoid being charged – only by contacting a customer service representative directly.
The regulator also alleges that HelloFresh required consumers to enter payment details to view and select meals from the full menu, despite representing that they would not be charged unless meals were selected.
In practice, the ACCC claims that clicking through to the meal selection screens triggered an ongoing subscription and a charge for the first delivery – even if no meals were chosen.
“In the case of HelloFresh, many consumers had not even selected meals but were unknowingly subscribed and charged regardless,” Woodward said.
“Traders must clearly communicate when consumers are signing up for a subscription, as well as how they can cancel and avoid being charged.”
Allegations specific to Youfoodz
In Youfoodz’s case, the ACCC also alleges that some consumers who attempted to cancel via their online account settings were told their first delivery had been cancelled and that they would not be charged, when in fact the delivery could not be cancelled that way.
Those customers were still charged and received their meals.
The regulator argues that this messaging further contributed to consumer confusion and financial harm.
Consumer experiences underpinning the case
The ACCC’s proceedings draw on individual consumer experiences, including that of a HelloFresh customer who entered payment details on their phone to view the menu, then decided not to proceed.
Unbeknownst to them, the ACCC alleges, saving payment details had already triggered a subscription.
The consumer only became aware after receiving a PayPal notification for the charge and struggled to contact the company while experiencing financial distress.
In another example, a Youfoodz customer cancelled their subscription online within minutes of viewing the menu, only to later receive a text confirming delivery and payment. After multiple calls, they were eventually offered a 50 per cent refund.
Enforcement priorities sharpen
The ACCC says subscription practices, particularly in the digital economy and supermarket and retail sectors, are firmly in its sights.
“Businesses using confusing and complicated subscription cancellation policies are 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,” Woodward said.
The regulator is also urging consumers to carefully review subscription terms when purchasing gifts during the festive season.
Consumer and fair trading issues in the digital economy are among the ACCC’s 2025–26 Enforcement Priorities.
What the ACCC is seeking
The ACCC is seeking penalties, compensation orders for affected consumers, declarations, publication orders, compliance programs and costs.
HelloFresh and Youfoodz had not responded to requests for comment at the time of publication.