Grill’d could be forced to donate millions for allegedly burying the fine print

Grill’d could be forced to compensate environmental charities for allegedly failing to donate $1 for every burger sold on Tuesdays over several years after a whistleblower tip-off sparked a consumer watchdog lawsuit.

The Australian Competition and Consumer Commission (ACCC) this week launched Federal Court action over the restaurant chain’s “Tree Day Tuesday” campaign, which promised to donate $1 per burger sold to charity.

Of more than 5 million burgers sold on Tuesdays from 2021 to mid-2024, only 4 per cent of purchases actually qualified under complex terms and conditions.

The regulator will seek significant penalties and a mandatory donation to the burger chain’s charity partner to match what consumers were promised, as well as a fine.

ACCC chair Gina Cass-Gottlieb said that if the regulator is successful in court, “there should be a penalty that will deter Grill’d from acting in this way, and also other businesses to understand that when they’re appealing to consumers’ environmental concerns, they need to be accurate and disclose all qualifications.”

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 alleged in a Federal Court filing lodged this week. “We consider this to be a form of greenwashing,” said Cass-Gottlieb. She confirmed the ACCC’s investigation had begun with a whistleblower tip-off, but would not provide any information about the tipster’s identity.

In one Facebook post from February 2022 cited by the consumer watchdog, Grill’d claimed that 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 bought on Tuesdays between January 2021 and April 2024, more than 1 million were bought by Grill’d loyalty members. However, only 17 per cent of the loyalty members’ purchases qualified for a donation, the ACCC said.

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 in a statement.

“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.”

The burger chain said it had worked internally and with stakeholders, including the ACCC, to ensure its initiatives were “clear and cause no confusion” to the Australian public.

However, Cass-Gottlieb said while Grill’d had ceased its “Tree Day Tuesday” campaign, it had not taken enough steps to satisfy the watchdog.

“We do not think we’re in a position where there has been the level of co-operative engagement and remedy,” she told this masthead, pointing to a recent instance where the ACCC had chosen not to take further action against JB Hi-Fi over misleading prices as the tech retailer had proactively refunded customers.

“We don’t think that that level of engagement leading to a settlement of our concerns has occurred.”

Annabel O’Neill, acting chief executive of Australian forest charity Greenfleet, said Grill’d donated $303,600 between 2021 and 2024 that supported 48 hectares of ecosystem restoration in Victoria.

“Greenfleet was aware that Grill’d ran ‘Tree Day’ promotions to support Greenfleet-planted forests through in-store activations and social media promotions,” O’Neill said. “Greenfleet was not privy to Grill’d sales data and has no way of knowing how many burgers were purchased through the promotion.”

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 several disputes over pay and working conditions. At present, it is 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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