Oregon Attorney General Dan Rayfield today announced a settlement with Grocery Delivery E-Service USA, Inc., doing business as HelloFresh, after an Oregon Department of Justice investigation found the company misled consumers with deceptive “free meal,” “free shipping,” and “free gift” offers.
“HelloFresh built its brand on promises of ‘free meals’ that were anything but,” said Attorney General Rayfield. “There’s no such thing as ‘free’ if families must spend hundreds of dollars to unlock the deal. This Oregon action doesn’t just clean up how HelloFresh markets to our residents – it will also help push the company to be honest in its advertising nationwide.”
HelloFresh — one of the world’s largest meal-kit companies with more than 3 million U.S. customers — routinely advertised promotions such as “10 free meals,” “$180 off,” or a “Free 8” Caraway Fry Pan.” In reality, the meals were not free, and the company failed to clearly disclose the true cost and conditions of its discounts.
The DOJ’s Economic Justice Section opened the case after observing misleading ads delivered to Oregon consumers.
What DOJ Found
Investigators determined that HelloFresh:
- Advertised “free meals” that were never “free.” Instead, discounts were spread across multiple weekly orders, requiring customers to spend hundreds of dollars to receive the full promotion.
- Failed to disclose that consumers had to buy a certain number of boxes to receive advertised gifts — such as an 8” Caraway fry pan — meaning customers who canceled early never received the promised item.
- Promoted “free shipping” offers that only applied to the first box while charging for shipping on subsequent boxes without clear disclosure.
Settlement Terms
Under an Assurances of Voluntary Compliance (AVC), HelloFresh must pay $106,000 to the State of Oregon and must change its advertising practices. The required reforms include:
- Accurate pricing disclosures: HelloFresh must clearly state when discounts apply only to new customers or only to the first box and must disclose how many boxes a customer must purchase to receive the full value of any advertised discount.
- “Free” offer compliance: Any offer described as “free” must include all material terms and limitations in a clear and conspicuous way.
- Transparent shipping costs: The company may not advertise “free shipping” unless shipping is actually free for all boxes covered by the offer.
