HelloFresh New Zealand faces court for misleading consumers

Criminal charges have been filed against global food-delivery platform HelloFresh’s New Zealand business for misleading customers about the subscriptions to its service.

The Commerce Commission alleges that between February 2022 and July 2023, HelloFresh offered customers a discount voucher without making clear that accepting it would reactivate their cancelled subscriptions.

Commerce Commission deputy chair Anne Callinan said the conduct breached the Fair Trading Act as it resulted in some cancelled subscriptions being reactivated without the customers’ consent.

“We’re concerned some consumers have been misled into paying for services from HelloFresh they didn’t want through the use of misleading wording and processes in cold calls,” Callinan continued.

“Buying products online is increasingly a way of life for Kiwi consumers and so the commission is prioritising action against illegal online sales conduct. This includes subscription traps, which come in many forms and include situations where consumers are misled into signing up for a paid subscription without knowing,” she added.

The commission started an investigation into HelloFresh after receiving customer complaints about its sign-up, cancellation, and reactivation processes. The charges were filed in the Wellington District Court.

In December, the agency filed charges against Woolworths New Zealand, Pak’nSave Silverdale, and Pak’nSave Mill Street over inaccurate pricing.