Key facts
- The ACCC has sued Grill'd for alleged greenwashing related to its 'Tree Day Tuesday' campaign.
- Grill'd allegedly misrepresented its donation promises between January 2021 and April 2024.
- The campaign claimed a $1 donation per burger sold on Tuesdays, but restrictive terms limited qualifying purchases.
- Only about 4% of over 5 million burgers sold during the period resulted in a donation.
- Grill'd donated $250,000, leading to the planting of 100,000 trees and restoration of over 40 hectares of forest.
The Australian Competition and Consumer Commission (ACCC) has initiated federal court proceedings against the burger chain Grill'd, alleging the company engaged in greenwashing. The watchdog claims Grill'd significantly overstated its contributions to environmental campaigns through its 'Tree Day Tuesday' promotion, which ran from January 2021 to April 2024.
According to the ACCC, Grill'd represented to customers that it would donate $1 from every burger purchased on Tuesdays towards planting trees. However, the regulator alleges that restrictive terms and conditions were not adequately disclosed, meaning only a small fraction of the more than 5 million burgers sold during the period qualified for a donation. The ACCC stated that only about 4% of sales resulted in a donation.
Grill'd acknowledged donating $250,000 to tree planting through the campaign, which it said resulted in 100,000 trees being planted and over 40 hectares of forest restored. The ACCC's complaint highlights that customers needed to be members of the Relish loyalty program, and only dine-in orders placed at the front counter qualified, excluding online orders, takeaways, and table orders made via QR codes.
ACCC chair Gina Cass-Gottlieb described the conduct as a form of greenwashing, noting that Grill'd's widespread operation across Australia meant its actions had the potential to mislead numerous consumers nationwide about the environmental benefits of their purchases. A spokesperson for Grill'd stated the promotion was undertaken with positive intent and that the company takes Australian Consumer Law seriously, emphasizing its commitment to trust and community support.
This legal action follows previous controversies involving Grill'd concerning pay and working conditions, including allegations of paying young workers less than minimum wage under a training program loophole. The company is also facing a class action lawsuit regarding alleged unpaid rest breaks for employees.