ACCC Takes Grill’d to Court Over Tree-Planting Donation Claims
Synopsis
Australia’s ACCC has launched Federal Court action against Grill’d, alleging the burger chain misled customers about donations linked to its Tree Day Tuesday promotion. The regulator claims only around 4% of more than five million Tuesday burger purchases qualified for tree-planting contributions. The case adds to growing scrutiny of environmental marketing and sustainability-related advertising claims.
Australia's consumer watchdog is taking burger chain Grill'd to court over claims it misled customers about donations linked to a long-running environmental promotion.
The Australian Competition and Consumer Commission (ACCC) alleges Grill'd represented that every burger sold on Tuesdays would result in a donation of A$1 to a tree-planting project under its Tree Day Tuesday promotion, which ran from January 2021 to April 2024 at restaurants across Australia.
The regulator claims more than five million burgers were sold on Tuesdays during this period, but that a donation was only made in around 4 per cent of cases, as a customer needed to satisfy a number of conditions that were not prominently displayed.
Conditions are at the centre of the legal challenge
According to court documents, customers would have had to be a member of Grill'd's Relish loyalty scheme and order burgers at the restaurant counter. Customers who ordered via QR codes or online were not eligible.
The ACCC claims the campaign gave the impression that all Tuesday burger sales went to the cause.
The competition and consumer watchdog is seeking various court orders and declarations from the Federal Court including a declaration that Grill'd engaged in misleading conduct, penalties, injunctions and legal costs.
Growing focus on green claims
The case is the latest development in increasing regulatory scrutiny over environmental marketing and advertising.
The ACCC has made greenwashing an enforcement priority in recent years, with a recent review of 247 businesses finding 57 per cent made an environmental or sustainability claim which warranting further attention.
Regulators in other countries, including the UK, Canada and the EU, are also looking closely at claims made to consumers about sustainability issues where purchase decisions may be informed by them.
Grill'd responds, shows profit and loss
Grill'd says the promotion was developed with the purpose of supporting environmental projects and that it takes its compliance with Australian consumer law seriously.
It said the promotion had raised about A$250,000 to fund 100,000 trees and restoration of more than 40 hectares of land.
Grill'd is privately owned and operates about 180 restaurants. Profit and loss filings showed Grill'd made revenue of A$441.3 million last year, with a net loss of about A$9 million.
The case is set to proceed in the Federal Court.
Source: Reuters
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
