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Meal delivery service settles consumer protection lawsuit [Santa Cruz Sentinel, Calif.]
Jan. 20 SANTA CRUZ A coalition of prosecutors, including Santa Cruz County’s, has scored a $450,000 settlement from online prepared meal-delivery service Home Chef in a recent consumer protection lawsuit.
The Chicago-based company has agreed to change its websites and sales practices after the suit was brought by the Santa Cruz County District Attorney Consumer and Environmental Affairs Unit working in conjunction with the California Auto-Renewal Taskforce in Los Angeles.
At issue in the case is the alleged lack of clear disclosure of the business’ automatic renewal terms and conditions, before charging customers for the service. Such disclosures must include instruction for the cancelation of the automatic renewal subscription. The law requires businesses to obtain consent from customers prior to automatic renewal and provide confirmation of the transaction. Home Chef is the latest in a