ACCC Takes Legal Action Against Grill’d for Tree Day Tuesday Campaign
The Australian Competition and Consumer Commission (ACCC) has initiated federal court proceedings against the Grill’d burger chain, alleging the company engaged in greenwashing by overstating the amount donated through its Tree Day Tuesday environmental campaign.
The ACCC announced on Tuesday that it had commenced legal action, claiming Grill’d misrepresented the campaign to customers for over three years.
Details of the Allegations
The ACCC alleges that from January 2021 to April 2024, Grill’d promoted that it would donate $1 from every burger purchased on a Tuesday towards tree planting efforts.
During this period, Grill’d sold more than five million burgers; however, the ACCC states that only approximately 4% of these sales resulted in a donation due to restrictive terms and conditions.
On the same day, Grill’d confirmed it had donated $250,000 to tree planting as part of the campaign.
The ACCC contends that Grill’d failed to adequately disclose the detailed conditions that determined which purchases qualified for the $1 donation.
Specifically, only dine-in orders placed at the front counter of Grill’d stores were eligible. Orders made online, for takeaway, or at tables via QR codes within the restaurant did not qualify.
Additionally, customers were required to be members of Grill’d’s Relish loyalty program for their purchases to be eligible for the donation.
Regulator’s View on Greenwashing
ACCC Chair Gina Cass-Gottlieb described the conduct as a form of greenwashing.
“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.
Grill’d Response
A spokesperson for Grill’d stated the Tree Day Tuesday promotion was conducted with positive intent and resulted in the planting of 100,000 trees and the restoration of over 40 hectares of forest.
“Grill’d takes Australian Consumer Law very seriously, and our reputation is forged in trust and doing the right thing in the communities where we live,”
the spokesperson said.
“Grill’d has worked internally and with all stakeholders, including the ACCC, to ensure that brand and sustainability initiatives undertaken are clear and cause no confusion in the eyes of the Australian public.”
Company Background and Additional Legal Issues
Grill’d operates 180 stores across Australia and has previously faced controversies related to employee pay and conditions.
The company is currently subject to a separate class action initiated by Gordon Legal, supported by the Shop, Distributive and Allied Employees’ Association (SDA), on behalf of Grill’d workers who allege they were not provided with their entitled 10-minute paid rest breaks during shifts of four hours or more.
When the class action was announced in December 2023, Grill’d CEO Simon Crowe emphasized the company’s commitment to its staff.
“We take very seriously our obligations to our staff – our greatest asset,”
Crowe said. He added that the recently approved enterprise agreement made Grill’d one of the highest-paying employers in the industry.
Grill’d Commitment to Community Support
On Tuesday, Grill’d reiterated its longstanding support for community groups across Australia.
“We are an Australian business, and supporting Australian communities and those in need has and will always be part of who we are,”
the spokesperson said.
