Grill’d has been taken to court for allegedly misleading customers about its donations to an environmental cause.
The ACCC has commenced proceedings in the Federal Court against the burger chain concerning its Tree Day Tuesday campaign between January 2021 and April 2024.
During the period, the company claimed it would donate $1 from every Tuesday burger purchase towards tree planting.
To qualify for a donation, the purchase had to be made on a Tuesday, had to be of a ‘main item’ (being a burger or a salad), had to be dine-in only, and had to be placed via orders at the front counter. The buyer also had to be a member of Grill’d’s Relish loyalty program, and the purchase could not be made in conjunction with any other offer.
More than 5 million burgers were bought on a Tuesday during the promotional period, of which only around 4 per cent met all of the criteria.
Grill’d put 26 advertisements about the promotions on social media, online and in-store. The ACCC alleges that the ads overstated the circumstances in which donations or contributions would be made.
“We consider this to be a form of greenwashing,” said ACCC chair Gina Cass-Gottlieb.
“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.
“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,” she added.
The ACCC is seeking declarations, penalties, costs and other orders.
Grill’d has approximately 173 stores throughout Australia, the majority of which are owned and operated by the company, with a small minority operated by franchisees.
In response, the company said the Tree Day Tuesday promotion was “undertaken with positive intent” and that over $250,000 was donated to plant over 100,000 trees.
“Grill’d has worked internally and with all stakeholders, including the ACCC, to ensure that brand and sustainability initiatives undertaken are clear and cause no confusion in the eyes of the Australian public,” it said in a statement.
This article was first published on Inside Retail.
