Grill’d burger chain sued over alleged greenwashing by consumer watchdog

The Australian Competition and Consumer Commission (ACCC) has launched federal court action against the Grill'd burger chain, alleging it engaged in greenwashing by significantly exaggerating its donations to environmental campaigns.

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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.

For over three years, Grill'd represented to customers that it would donate $1 from every burger purchased on Tuesdays to plant trees. However, the ACCC claims that between January 2021 and April 2024, only about 4% of the more than 5 million burgers sold during the promotion resulted in a donation due to highly restrictive terms and conditions.

The burger chain acknowledged donating $250,000 to tree planting from the campaign. The ACCC stated that Grill'd failed to adequately disclose that only dine-in orders placed at the counter qualified. Online orders, takeaway, and QR code table orders were excluded. Furthermore, customers had to be members of the Grill'd Relish loyalty program for their purchases to be eligible.

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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.

ACCC chair Gina Cass-Gottlieb described the conduct as greenwashing, noting that Grill'd's nationwide operations had the potential to mislead numerous consumers about the environmental benefits of their purchases. A Grill'd spokesperson asserted the "Tree Day Tuesday" promotion was "undertaken with positive intent," resulting in 100,000 trees planted and over 40 hectares of forest restored. The company stated it takes Australian Consumer Law seriously and works to ensure its brand and sustainability initiatives are clear. Grill'd, which operates 180 stores, has faced previous controversies regarding pay and conditions.

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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.