HelloFresh to Pay $7.5 Million to Settle Automatic Renewal Suit

California regulators are sending a clear message to subscription-based businesses. HelloFresh has agreed to pay $7.5 million and revamp its practices after the California Automatic Renewal Task Force alleged that the company enrolled consumers in auto-renewing plans without proper disclosures or consent, and used tactics like countdown timers, misleading free offers, and unclear cancellation terms. As part of the settlement, HelloFresh must implement stricter consent mechanisms, provide clear disclosures, and offer easier cancellation options. For legal, compliance, and marketing teams, this case highlights the heightened scrutiny on subscription models and the growing expectation that companies go beyond the letter of the law to ensure transparent, consumer-friendly practices. Hosted by Simone Roach. Based on a blog post by Gonzalo E. Mon.