Facts

Relish Labs LLC, dba Home Chef is a subscription-based online meal kit delivery company headquartered in Chicago. The company employs roughly 300 people in its San Bernardino production facility. The People of California sued on behalf of the class members against Home Chef, alleging violations of the California Business and Professions Code. The class included all people enrolled in a paid subscription at www.homechef.com between March 1, 2016, and January 12, 2021, who were charged for at least one automatic renewal cycle without their affirmative consent and who had not received a refund.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendant failed to present automatic renewal offer terms before the online subscription was fulfilled, charged for the automatic renewals without first obtaining its California consumers' affirmative consent to the renewal terms, failed to provide an email confirmation of the transaction immediately after the contract was made, failed to provide the mechanisms for its California consumers to cancel the automatic renewal, and using their website for the sale of its services in a materially misleading way.

DEFENDANT'S CONTENTIONS: Defendant admitted no wrongdoing and denied all contentions.

Result

$450,000 settlement. Home Chef must institute a restitution program to reimburse all California consumers who were part of the class and are entitled to a portion of the settlement. Home Chef also must clearly and conspicuously disclose its automatic renewal terms and receive affirmative consent from customers to the terms through a checkbox before charging for an automatic renewal. Finally, Home Chef must email customers a confirmation of the transaction after they pay that clearly indicates renewal terms and allows them to cancel their subscription.