The Commerce Commission has filed criminal charges against HelloFresh New Zealand for allegedly misleading consumers in cold calls aimed at reactivating customers who had previously cancelled their food delivery service.
The claim relates to conduct between February 2022 and July 2023. According to Commerce Commission deputy chairperson Anne Callinan, HelloFresh NZ allegedly offered some former customers discount vouchers without clearly stating that accepting the voucher would reactivate their subscription.
ComCom claims that it violates the Fair Trading Act.
The charges against HelloFresh were formally presented in the Wellington District Court.
Callinan said charging customers for services they are either unaware of or haven’t agreed to is “unacceptable behaviour.”
“In these calls, it was not made clear to some customers that if they accepted a discount voucher offered, their subscription would be reactivated, and their bank account would be debited.”
“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.”
“Subscription traps are becoming more common as more businesses offer subscription-based services. We’re seeing more complaints about subscription services, the way consumers are being signed up to ongoing service contracts, and difficulties in cancelling subscriptions.”
Callinan emphasised that combating deceptive practices like subscription traps remains a key enforcement priority, and they will continue to take action against businesses engaging in such misconduct.
Meanwhile, a HelloFresh spokesperson responded to the issue and acknowledged ComCom’s decision to file charges.
In a conversation with 1News, the spokesperson said HelloFresh’s practice “fell well short of our standards and should not have happened.”
They said HelloFresh had cooperated fully with the Commerce Commission’s investigation and implemented corrective measures as soon as it became aware of the activities in question.