Thrive Market Settles Suit for $1.55M
Thrive Market has settled a class action lawsuit for $1.55 million in California. The online-only grocer agreed to pay civil penalties, restitution and court costs in a case stemming from allegations of false advertising and the automatic renewal of subscriptions.
Los Angeles County, which took part in the lawsuit along with other local counties and cities, announced the settlement on May 3. “This case highlights a flagrant violation of consumer rights and ethical business practices,” declared L.A. District Attorney George Gascón. “Automatic renewal without explicit consent undermines the fundamental principle of transparency and fairness in consumer transactions. As guardians of justice and defenders of the public interest, it’s imperative that we hold accountable those who engage in such deceptive practices.”
Santa Clara County’s D.A. Jeff Rosen expressed similar sentiments. “Consumer protection laws are the cornerstone of a fair and competitive marketplace, safeguarding consumers from deceptive business practices. We must continue to ensure that all businesses are playing by the same rules,” he said.
In the filing, plaintiffs contended that Thrive Market violated parts of California’s Automatic Renewal Law and False Advertising Law, which require companies to clearly disclose terms and getting the consumers’ consent for subscription. The company, which denied any wrongdoing, has since updated its platform to clarify and communicate policies. Also, as part of the agreement, Thrive Market will email consumers a confirmation of the transaction that includes the automatic renewal terms and allow customers to cancel their subscription at will.
According to the county officials, current Thrive Market subscribers in the state are eligible for a share of the settlement. The share will be credited to their accounts as “Thrive cash.”
Founded in 2014, Thrive Market celebrates its 10th anniversary this year. It offers a hyper-curated catalog of organic and non-GMO products, as well as 90-plus filters and values, allowing customers to shop by diet and lifestyle. The brand’s social impact arm, Thrive Gives, has raised more than $13 million since its inception to fund food access and environmental sustainability causes. Thrive Market has been carbon neutral since 2014, in 2020, it became the largest online grocer in the United States to earn B Corporation Certification, and in 2023, it converted to a Public Benefit Corporation. By 2025, the company aims to become carbon negative and the world’s first climate-positive grocer.
