The Australian Competition and Consumer Commission (ACCC) has accused burger chain Grill'd of greenwashing.
From 2021 to 2024, Grill'd's 'Tree Day Tuesday' promotion pledged $1 from burger purchases to “protect forests”. The ACCC now alleges only 4% of all burgers bought on Tuesdays were actually eligible.
Grill'd said it “takes Australian Consumer Law very seriously”. Here's what you need to know.
Background
Grill'd started in Melbourne in 2004. Today, it has 178 stores in every state and territory, as well as Bali.
From January 2021 to April 2024, Grill'd ran its 'Tree Day Tuesday' promotion. The campaign appeared on social media and the Grill'd app, including one post which said: “For every Tuesday Grill'd burg purchase, $1 goes towards planting a tree.” In other posts viewed by TDA, Grill'd specified the promo is for Relish loyalty program members. In 2022, the burger chain announced environmental offset charity Greenfleet had planted 10 “Grill'd forests”.
The ACCC case
This week, the ACCC announced it would pursue legal action against Grill'd for “misleading consumers” and “greenwashing”. Greenwashing is when a business publishes incorrect or misleading information to suggest it is more environmentally responsible than it is.
For a burger to be eligible for the campaign, it had to meet specific criteria. Eligible orders had to be:
- Purchased on a Tuesday;
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- A 'main item' (burger or salad);
- Bought by a Grill'd Relish loyalty program member who scanned their barcode;
- Dine-in only – not takeaway, online order, or delivery;
- Placed at the front counter, not via table QR codes; and
- Not combined with any other offer.
The ACCC's legal filing includes examples of Grill'd social media posts that did not specify several of these conditions, such as it only being for loyalty program members, or only being for dining in. The watchdog says the criteria meant only 4% of the five million burgers bought on Tuesdays from January 2021 to April 2024 were eligible for the $1 donation.
Of the one million sales to Relish members, the ACCC alleges only 17% of burgers met all of the criteria for a donation. “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,” ACCC Chair Gina Cass-Gottlieb said.
Grill'd's response
In response to the case, Grill'd said the promotion was “undertaken with positive intent” and that “over $250,000 was donated to plant over 100,000 trees and restoration of over 40 hectares of forests”.
The burger chain added that it “takes Australian Consumer Law very seriously” and has worked with the ACCC so that its sustainability initiatives “are clear and cause no confusion”.
