Updated on June 17 to include a statement from Grill’d
Perth, June 16: The Australian Competition and Consumer Commission (ACCC) has launched Federal Court proceedings against Grill’d, alleging the burger chain misled customers about donations linked to its Tree Day Tuesday environmental campaign.
The ACCC claims that between January 2021 and April 2024, Grill’d represented that it would donate $1 from every burger purchased on a Tuesday towards planting trees.
However, the regulator alleges only a small proportion of purchases actually qualified for a donation because of conditions that were either not disclosed or not adequately disclosed to customers.
“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,” ACCC Chair Gina Cass-Gottlieb said.
According to the ACCC, purchases only qualified if customers were members of Grill’d’s Relish loyalty program, dined in, ordered at the counter, scanned their loyalty barcode and met several other requirements.
More than five million burgers were purchased on Tuesdays during the relevant period, but the ACCC alleges only about four per cent of those purchases qualified for a donation. Even among Relish members, only around 17 per cent of Tuesday burger purchases met the criteria.
The regulator’s case relates to 26 advertisements published across social media, online platforms and in-store marketing, which it alleges overstated the circumstances under which donations would be made.
“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,” Cass-Gottlieb said.
The ACCC is seeking declarations, penalties, costs and other orders.
In a statement to DailyStraits.com, Grill’d said the ACCC proceedings relate to its “Tree Day Tuesday” promotion, which ran from January 2021 to April 2024, and centre on how certain terms and conditions of the campaign were communicated.
The company said the promotion was launched with positive intent and resulted in more than $250,000 being donated, helping to plant over 100,000 trees and restore more than 40 hectares of forest.
Grill’d said the vast majority of its communications about the campaign identified that the offer was limited to Relish members, while detailed terms and conditions were available on its website throughout the promotion and referenced on in-store promotional materials.
The company also highlighted its broader community support initiatives, noting that its Local Matters program has raised more than $7 million for charities, schools and sporting clubs across Australia.
Grill’d said it takes its obligations under Australian Consumer Law seriously and has worked internally, as well as with stakeholders including the ACCC, to ensure its brand and sustainability initiatives are clearly communicated and do not cause confusion among consumers.
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