ACCC sues Grilled over alleged 'greenwashing' tree-planting promotion

The Australian Competition and Consumer Commission (ACCC) has launched Federal Court proceedings against Grill'd, alleging the burger chain misled consumers about the extent of donations made under its Tree Day Tuesday environmental campaign.

The regulator claims that between January 2021 and April 2024, Grill'd represented it would donate $1 from every burger purchased on a Tuesday towards planting trees, when in reality, only a small proportion of purchases qualified for a donation.

ACCC chair Gina Cass-Gottlieb said the watchdog considered the conduct a form of greenwashing.

"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," Cass-Gottlieb said.

According to the ACCC, customers were required to meet a range of conditions before a donation would be triggered. Purchases had to be made on a Tuesday, involve a burger or salad, be made by a member of the Grill'd Relish loyalty program, dine-in only, ordered at the counter, accompanied by a loyalty barcode scan, and not combined with another offer.

The regulator alleges that while more than five million burgers were purchased on Tuesdays during the relevant period, only around 4% qualified for a donation. More than one million burgers were purchased by Relish members, yet only 17% of those transactions met all eligibility requirements.

The ACC's case centres on 26 advertisements published across social media, online channels and in-store marketing materials. The regulator alleges the campaign overstated the circumstances in which donations would be made and may have influenced environmentally conscious consumers.

"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," Cass-Gottlieb said.

The ACCC is seeking declarations, penalties, costs and other orders. The case follows a series of recent regulatory actions targeting alleged greenwashing across Australia.