The ACCC has launched Federal Court proceedings against Grill’d, alleging the burger chain misled customers about donations linked to its Tree Day Tuesday campaign.
The consumer watchdog alleges Grill’d made false or misleading representations between January 2021 and April 2024 about when it would donate to an environmental cause.
At the centre of the case is Grill’d’s claim that $1 from every burger bought on a Tuesday would go towards planting trees. The ACCC alleges only a small share of Tuesday purchases actually qualified.
What the ACCC alleges
ACCC Chair Gina Cass-Gottlieb said the regulator considered the conduct to be a form of greenwashing.
“We allege Grill’d misled customers by overstating the extent of the donations it would make and the environmental contributions from its Tree Day Tuesday promotion. We consider this to be a form of greenwashing,” Cass-Gottlieb said.
“In fact, only a small percentage of purchases on Tuesdays qualified for a donation by Grill’d because of the detailed conditions of the promotion, which we say were not disclosed or not adequately disclosed to customers.”
Gina Cass-Gottlieb
The ACCC said more than five million burgers were bought on Tuesdays during the campaign period. It alleges only around four per cent of those purchases qualified for a donation.
Of those five million burgers, more than one million were bought by Grill’d Relish members. The ACCC alleges only about 17 per cent of those purchases qualified under the promotion.
The conditions behind the campaign
For a purchase to qualify under the Tree Day Tuesday promotion, customers had to meet a series of conditions.
The purchase had to be made on a Tuesday and include a “main item”, such as a burger or salad. The customer also had to be a Grill’d Relish loyalty program member.
The order had to be dine-in only, placed at the front counter, and could not be takeaway, online or delivery. Orders placed using a QR code at a table did not qualify.
The customer also had to scan their Relish barcode at the counter and could not use the promotion with another offer.
Ads across social, online and in-store
The ACCC’s case includes 26 separate Grill’d advertisements across social media, online and in-store.
The regulator alleges the ads overstated the circumstances in which donations would be made, even though the level of disclosure varied across different executions.
One allegedly misleading statement used on Grill’d’s Facebook and Instagram pages read: “GROW-A-GRILL’D FOREST. For every Tuesday Grill’d burg purchase, $1 goes towards planting a tree.”
Screenshot of a post from the Grill’d Instagram page
Another Facebook statement said customers could “help us grow our 100-year protected forest by buying a burger today.”
Cass-Gottlieb said Grill’d’s national footprint meant the campaign had the potential to affect many consumers.
“Grill’d is a large fast-food chain and operates across Australia, meaning that its conduct had the potential to mislead many consumers nationwide about the environmental benefits of their purchase,” she said.
“We allege that Grill’d deprived consumers of the ability to make an informed decision by overstating the circumstances in which it would make a donation to an environmental cause, which may also have given Grill’d an unfair competitive advantage.”
Screenshot of a post on the Grill’d Facebook page
ACCC warns brands over green claims
The Tree Day Tuesday promotion was a partnership between Grill’d and Greenfleet Trust, an environmental not-for-profit organisation.
Grill’d has around 173 stores across Australia. The company markets itself as having a focus on sustainability, the environment and community contribution.
Cass-Gottlieb said businesses must ensure environmental claims are accurate and clearly qualified.
“Any business that seeks to appeal to consumers’ environmental concerns must make sure that its claims are accurate and that any conditions or qualifications are adequately disclosed,” she said.
“When we see a business seeking to exploit a consumer’s environmental concerns through misleading or deceptive conduct, we will not hesitate to take appropriate enforcement action.”
The ACCC is seeking declarations, penalties, costs and other orders. The allegations are before the Federal Court.
The regulator said the matter was brought to its attention by an anonymous report.
Grill’d responds to ACCC proceedings
In a statement, Grill’d said the ACCC proceedings relate to how specific terms and conditions were communicated during the Tree Day Tuesday promotion, which ran from January 2021 to April 2024.
The company said the campaign was “undertaken with positive intent” and resulted in more than $250,000 being donated to plant over 100,000 trees and support the restoration of more than 40 hectares of forests.
Grill’d also pointed to its broader community programs, including Local Matters, which it said has raised more than $7 million for thousands of community groups across Australia, including local charities, schools and sporting clubs.
“We are an Australian business, and supporting Australian communities and those in need has and will always be part of who we are,” Grill’d said.
The company said it takes Australian Consumer Law seriously and has worked internally and with stakeholders, including the ACCC, to ensure its brand and sustainability initiatives are clear and do not cause confusion for the Australian public.