Misleading and Deceptive Conduct

The Commerce Commission has filed criminal charges against HelloFresh New Zealand, alleging that the meal-kit delivery company misled former customers when reactivating cancelled subscriptions.

The charges relate to conduct where customers were allegedly offered discount vouchers via cold calls without being clearly informed that accepting the voucher would reactivate their subscriptions and result in charges to their account.

Commerce Commission Deputy Chair, Anne Callinan, stated that the alleged conduct may have breached the Fair Trading Act 1986, which prohibits misleading and deceptive practices. Given the prevalent use of subscription-based services, the Commerce Commission is focused on tackling ‘subscription traps,’ where consumers may be unwittingly signed up for ongoing service contracts.

While the allegations have yet to be tested in court, the case serves as a reminder for businesses to ensure their sales practices are clear and transparent, and for consumers to remain vigilant.

Misleading or deceptive conduct, even if unintentional, can result in significant penalties and reputational damage. The Commerce Commission has signalled that enforcing fair trading laws in the online subscription space is a priority.

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