Grill'd Accused of "Greenwashing" Over Tree Day Tuesday Promotion
The ACCC alleges the burger chain misled customers about donations for tree planting.
"The ACCC views this conduct as a form of greenwashing, potentially misleading many consumers nationwide." — ACCC Chair Gina Cass-Gottlieb
The Australian Competition and Consumer Commission (ACCC) has initiated federal court proceedings against burger chain Grill'd, accusing the company of misleading consumers over its "Tree Day Tuesday" promotion.
The Allegations
The ACCC alleges that between January 2021 and April 2024, Grill'd misrepresented its promotion by stating it would donate $1 for every burger purchased on a Tuesday to tree planting.
However, the terms and conditions were far more restrictive than advertised. While Grill'd sold over 5 million burgers on Tuesdays during this period, only about 4% of those purchases qualified for a donation.
Eligible purchases were limited to:
- Dine-in orders
- Placed at the front counter
- Made by members of Grill'd "Relish" loyalty program
Online orders, takeaway orders, and QR code orders were all excluded from the promotion.
The Outcome
Grill'd has acknowledged donating $250,000 as a result of the campaign. This means the effective contribution was less than $0.05 per burger sold on Tuesdays.
Company Response
A spokesperson for Grill'd stated the promotion was undertaken with "positive intent," resulting in the planting of 100,000 trees and restoration of over 40 hectares of forest.
"Grill'd takes Australian Consumer Law seriously and has worked with stakeholders, including the ACCC, to ensure clarity in its sustainability initiatives," the spokesperson added.
Company Background
Grill'd operates 180 stores across Australia. The chain has previously faced controversies regarding employee pay and conditions, including a separate class action over alleged unpaid rest breaks.
Editor's Note: The ACCC's enforcement action serves as a reminder that promotional claims must match actual practice, particularly in sustainability marketing.