ESG Enforcement Tracker

The ACCC has commenced proceedings in the Federal Court of Australia against the restaurant chain Grill’d, alleging it made false or misleading representations to customers amounting to greenwashing.

Between January 2021 and April 2024, Grill’d ran a promotional campaign titled ‘Tree Day Tuesday’, in which it represented to customers that AUD$1 from every burger purchased on a Tuesday would be donated towards tree planting initiatives.

During the campaign period, Grill’d sold more than 5 million burgers. However, the ACCC alleges that only around 4% of these sales were deemed eligible for donation due to a series of restrictive conditions imposed by Grill’d. The company has acknowledged that it donated AUD$250,000 to tree planting as a result of the campaign.

For the purchase to qualify for a donation under Grill’d’s ‘Tree Day Tuesday’ conditions, it had to fulfil the following criteria:

• • the purchase had to be made on a Tuesday;
  • the purchase had to be of a ‘main item’ (being a burger or salad);
  • the buyer had to be a member of the Grill’d Relish loyalty program;
  • the purchase had to be dine-in only and not takeaway, online order, or delivery;
  • dine-in orders had to be placed at the front counter (orders made by QR code at a table were not eligible);
  • the buyer had to scan their loyalty program bar code at the counter when ordering; and
  • the purchase could not be made in conjunction with any other offer.
  • The ACCC alleges these conditions were not adequately disclosed to consumers. In support of their case, the regulator has identified 26 separate Grill’d advertisements from across social media, online platforms, and in-store materials. According to the ACCC, the conditions for donations were not represented consistently, and the advertisements collectively overstated the circumstances in which donations would be made by Grill’d.

The ACCC chair, Gina Cass-Gottlieb, stated “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.” The ACCC is seeking declarations, penalties, costs and other orders.