HungryRoot Facing Class Action Over Allegedly Illegal Automatic Subscription Renewals

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A proposed class action alleges HungryRoot automatically renews consumers’ grocery delivery subscriptions without first making certain disclosures required under California law.

According to the 37-page case, HungryRoot has intentionally designed its online and in-app subscription process to increase accidental sign-ups and make it “next to impossible” for consumers to cancel their monthly subscriptions. The lawsuit claims HungryRoot has violated California’s Automatic Renewal Law (ARL) by automatically charging consumers each month without first obtaining their affirmative consent and clearly and conspicuously disclosing its auto-renewal terms and cancellation policy.

The complaint says that the online sale of subscription-based products and services has grown into a “booming industry” in recent years, but although the subscription e-commerce market may be easy to enter, retailers have found that many consumers are quick to lose interest and cancel their services. To cut down on churn, some companies rely on deceptive design tactics known as “dark patterns” to trick customers into signing up for recurring subscription plans that are difficult to cancel, the suit relays. A 2018 TechCrunch article explains that retailers “intentionally confus[e] users with their [website or] app’s design and flow, by making promises of ‘free trials’ that convert after only a matter of days, and other misleading tactics.”

Per the suit, HungryRoot traps consumers into expensive monthly plans by concealing its auto-renewal terms, even though the ARL requires companies to present their terms to consumers in a “clear and conspicuous manner.” Specifically, HungryRoot does not tell customers before check out that they will be charged recurring fees unless they cancel, or how they can cancel their subscription, the length of the automatic renewal period or by when they must cancel to avoid further charges for the subsequent period, the case says.

The filing adds that, in violation of the ARL, HungryRoot never requires consumers to read or affirmatively agree to any terms of service and therefore does not obtain their consent to automatically charge their credit or debit cards each month.

After consumers make their purchase, HungryRoot’s follow-up email lacks certain disclosures required by the ARL, including its automatic renewal offer terms, cancellation policy, instructions on how to cancel “in a manner that is capable of being retained by the consumer,” the length of the automatic renewal period, how much they will be charged and that the fees and service will continue until they cancel.

Due to the company’s missing and deficient disclosures, the plaintiff, a California resident, purchased a monthly HungryRoot subscription at a promotional rate in February 2021 while unaware that she had enrolled in a program that would automatically renew and charge her varying rates each month until she canceled, the suit relays.

Although the plaintiff thought she canceled her HungryRoot subscription on November 22 of last year, she saw three days later that the company had charged her credit card $131 for the next month’s order, the filing relays. As the case tells it, the plaintiff never received an email from HungryRoot confirming her cancellation, and its customer support has not been responsive.

The lawsuit looks to cover anyone in California who, during the applicable statute of limitations period, incurred renewal fee(s) in connection with a HungryRoot subscription.

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