The Australian Competition and Consumer Commission (ACCC) has filed separate lawsuits in the Federal Court against Grocery Delivery E-Services Australia Pty Ltd, trading as HelloFresh, and Youfoodz Pty Ltd. The ACCC claims that both companies misled consumers about the ease of canceling subscriptions, violating the Australian Consumer Law.

According to the ACCC, HelloFresh and Youfoodz advertised that new customers could cancel their subscriptions easily through their online accounts before a specified cut-off time. However, many consumers who attempted to cancel were still charged for their first order. The ACCC alleges that HelloFresh's misleading practices occurred between January 1, 2023, and March 14, 2025, affecting over 62,000 customers, while Youfoodz's practices spanned from October 1, 2022, to November 22, 2024, impacting nearly 40,000 customers.

Commissioner Luke Woodward stated that the cases highlight confusing subscription practices that breach consumer laws. He emphasized the need for businesses to clearly communicate subscription terms and cancellation processes to avoid consumer harm. The ACCC is seeking compensation for affected consumers, penalties, and the implementation of compliance programs.

Individual consumer experiences reveal the extent of the issue, with some consumers unknowingly subscribed and charged despite attempts to cancel. The ACCC's investigation began in October 2024 following numerous consumer complaints, and it underscores the importance of transparency in subscription services.