The Commerce Commission of New Zealand has initiated criminal proceedings against HelloFresh, accusing the meal delivery service of misleading consumers through its reactivation calls. The allegations focus on the period from February 2022 to July 2023, during which HelloFresh reportedly offered discount vouchers to former customers without clearly stating that accepting these vouchers would reactivate their subscriptions.

According to Anne Callinan, Deputy Chair of the Commerce Commission, the company’s actions led to some customers unknowingly reactivating their subscriptions and incurring charges. Callinan emphasized that taking payments for services that customers are unaware of or have not consented to is unacceptable. The Commission is particularly concerned about the misleading language and processes used in these cold calls.

The rise of online shopping in New Zealand has prompted the Commission to prioritize actions against illegal online sales practices, including subscription traps. These traps often mislead consumers into signing up for ongoing paid subscriptions without their knowledge. The Commission has noted an increase in complaints regarding subscription services, particularly related to sign-up, cancellation, and reactivation processes.

The investigation into HelloFresh was launched following a surge in complaints about its subscription practices. The charges have been filed in the Wellington District Court, marking a significant step in the Commission's ongoing efforts to combat misleading conduct in the subscription service sector.