Updated ,first published
Grill’d is facing a lawsuit from the consumer watchdog claiming it misled millions of Australians by promising to donate $1 to the environment per burger sold on Tuesdays when only 4 per cent of purchases qualified under its complex terms.
The terms and conditions of the three-year ‘Tree Day Tuesday’ campaign – which required that the orders be placed by Grill’d loyalty members, for in-store dining, at the front counter, with a separate barcode scanned – were so restrictive that only a fraction of the 5 million burgers sold qualified.
“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,” said ACCC chair Gina Cass-Gottlieb.
“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.”
Across 26 advertisements on social media, online, and in store from January 2021 to April 2024, the burger chain exaggerated the circumstances in which it would make a donation, the ACCC alleges in a Federal Court filing lodged this week.
In one Facebook post from February 2022 cited by the consumer watchdog, Grill’d claimed buying a burger would do “something for the planet”.
“If you don’t have time in that busy schedule of yours to plant a tree today, swing by for a burger instead and we’ll plant one for you,” the post read. “Every burger purchased by our Relish members today helps grow our Grill’d Forests.”
Of about 5 million burgers that were purchased on Tuesdays between January 2021 and April 2024, over 1 million were bought by Grill’d loyalty members. However, only 17 per cent of the loyalty members’ purchases qualified for a donation, according to the ACCC.
Cass-Gottlieb said businesses that want to appeal to consumers’ environmental concerns must ensure conditions and qualifications are properly disclosed, and those seeking to exploit these concerns will face enforcement action.
In a statement, Grill’d said the company had a proud history of donating to community groups and that this issue centred around the “communication of specific terms and conditions for this promotional campaign”.
“The Tree Day Tuesday promotion was undertaken with positive intent and over $250,000 was donated to plant over 100,000 trees and restoration of over 40 hectares of forests,” the company said.
“Grill’d takes Australian Consumer Law very seriously, and our reputation is forged in trust and doing the right thing in the communities where we live.
Grill’d operates a network of nearly 180 restaurants across the nation and has long tried to differentiate its burgers by pointing to its quality, sustainability, and charity initiatives. However, over the past decade, it has faced multiple disputes over pay and working conditions. It is currently facing a class action for allegedly denying workers 10-minute paid breaks.
“I am completely proud of and stand behind all that we represent,” Grill’d chief executive Simon Crowe told this masthead regarding the company’s ethics and values. “We try and do the right thing on all occasions. I don’t think we’re ever perfect, but I think we contribute meaningfully to society and to our communities in a way that we’re really proud.”
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Jessica Yun is a business reporter covering retail and food for The Sydney Morning Herald and The Age.Connect via X or email.
