(KRON) — An online grocery delivery company will pay $1.55 million to settle a consumer protection lawsuit filed over allegations of false advertising and automatically renewing customer subscriptions.

Thrive Market, an e-commerce membership-based grocery delivery service offering natural and organic food products, allegedly violated parts of California’s Automatic Renewal Law and False Advertising Law, investigators said. As part of the settlement, Thrive Market will pay $1,004,000 in civil penalties, $96,000 in investigative costs, and $450,000 in restitution.

District attorneys of Santa Clara, Santa Barbara, Santa Cruz, San Diego, and Los Angeles counties filed the consumer protection lawsuit. The settlement was approved on April 30 by Santa Barbara County Superior Court Judge Colleen Sterne. 

State law prohibits companies from automatically renewing consumers’ subscriptions without clearly and conspicuously disclosing the subscription terms and obtaining the consumer’s affirmative consent.

Companies are required to provide a post-purchase acknowledgment that contains the required disclosures and explains how to cancel the subscription.

“Consumer protection laws are the cornerstone of a fair and competitive marketplace, safeguarding consumers from deceptive business practices,” Santa Clara County District Attorney Jeff Rosen said. “We must continue to ensure that all businesses are playing by the same rules.”

California consumers currently subscribed to Thrive Market are eligible for a proportional share of the restitution.

Investigators said Thrive Market worked cooperatively throughout the probe and has since made changes to its website, automatic renewal notices, and advertising practices.