Australiaâs competition and consumer watchdog has launched Federal Court proceedings against meal delivery brands HelloFresh and Youfoodz, alleging the companies misled new subscribers about how easily they could cancel their subscriptions â and that tens of thousands of customers were still charged for a first order even after cancelling before the stated cut-off time.
The Australian Competition and Consumer Commission (ACCC) says it has commenced separate cases against Grocery Delivery E-Services Australia Pty Ltd (trading as HelloFresh) and Youfoodz Pty Ltd, both of which are owned by the German-based parent company HelloFresh SE.
The case was first reported by ABC News , with further details outlined in the regulatorâs public statements.
What the ACCC alleges
According to the ACCC, both services advertised across their websites and mobile apps that new customers could easily cancel their subscription through online account settings, provided they did so before a specified cut-off time, and avoid being charged for their first box or delivery.
The regulator alleges this was not how the systems actually worked. In many cases, consumers who attempted to cancel online before the cut-off were still charged and received the first delivery anyway. The ACCC says customers often had to contact customer service directly to stop the order.
The watchdog has described these practices as a form of âsubscription trapâ, where signing up is simple but cancelling â especially in time to avoid being charged â is significantly more difficult than advertised.
How many customers were allegedly affected?
The ACCC claims that during the periods under investigation, 62,061 HelloFresh customers and 39,408 Youfoodz customers were charged despite cancelling before the stated cut-off for their first order.
The alleged conduct spans from January 2023 to March 2025 for HelloFresh, and from October 2022 to November 2024 for Youfoodz.
Extra allegation against HelloFresh: payment details to view the menu
In addition to cancellation concerns, the ACCC alleges HelloFresh required consumers to provide payment details simply to view and select meals, while suggesting during sign-up that no charge would occur unless meals were actively selected.
The regulator claims that once consumers progressed through the sign-up screens, they were automatically entered into an ongoing subscription and billed for the first delivery â sometimes without realising they had subscribed.
Further information on the ACCCâs position is available via the regulatorâs official release on accc.gov.au .
Extra allegation against Youfoodz
The ACCC also alleges that Youfoodz informed customers who cancelled online that their first delivery had been cancelled and that they would not be charged â when, in reality, the delivery could not be cancelled through that method.
As a result, some customers were allegedly still charged and received their first delivery despite believing the subscription had been cancelled.
What the ACCC is seeking
The regulator is seeking a range of court orders, including financial penalties, consumer compensation, court declarations, publication orders, and the implementation of compliance programs to prevent future breaches of Australian Consumer Law.
The ACCC has stressed that businesses must clearly explain when a customer is entering a subscription and how cancellation works, particularly where money is involved.
HelloFresh response and what happens next
HelloFresh has said it takes the allegations seriously and maintains it does not intend to mislead customers into receiving unwanted deliveries. The company has indicated it will continue to engage with the regulator as the case proceeds.
The matter is currently before the Federal Court. The allegations have not yet been tested, and no findings have been made at this stage.
Why this case matters
The case comes amid broader scrutiny of subscription-based business models in Australia, particularly where cancellation processes are not as clear or accessible as sign-up.
Consumer advocates say the outcome could have implications beyond meal kits, affecting streaming services, apps, and other recurring-payment platforms.
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