The promise vs. the reality
Grill'd told customers that buying a burger on Tuesdays would do "something for the planet." The reality? Of more than 5 million burgers sold on Tuesdays from 2021 to mid-2024, only 4% of purchases actually triggered a $1 donation. The Australian Competition and Consumer Commission (ACCC) has now launched Federal Court action, calling it a form of greenwashing.
The burger chain's "Tree Day Tuesday" campaign ran across 26 ads on social media, online and in stores. One Facebook post from February 2022 told customers: "If you don't have time in that busy schedule of yours to plant a tree today, swing by a burger instead and we'll plant one for you." The fine print made the offer nearly impossible to qualify for.
How the fine print buried
the deal
To get the donation, customers had to be Grill'd loyalty members and jump through hoops. Even among the 1 million loyalty members who bought burgers on Tuesdays, only 17% of their purchases met the conditions. The ACCC says the complex terms were buried so deep that most shoppers had no idea they weren't actually supporting the cause.
ACCC chair Gina Cass-Gottlieb said the regulator wants a penalty that'll deter Grill'd and other businesses from misleading consumers about environmental claims. "We consider this to be a form of greenwashing," she said. The investigation began after a whistleblower tipped off the watchdog.
Grill'd defends itself
Grill'd said the promotion was done with "positive intent" and that it donated over $250,000, planting more than 100,000 trees and restoring 40 hectares of forest. The company said it takes Australian Consumer Law seriously and has worked with the ACCC to make its initiatives "clear and cause no confusion."
But Cass-Gottlieb wasn't impressed. She said Grill'd hasn't cooperated enough to settle the case, unlike JB Hi-Fi which recently avoided court action by proactively refunding customers over misleading prices. "We don't think we're in a position where there has been the level of co-operative engagement and remedy," she said.
What the charity says
Greenfleet, the charity that received Grill'd donations, confirmed it got $303,600 between 2021 and 2024, which supported 48 hectares of ecosystem restoration in Victoria. But acting CEO Annabel O'Neill said Greenfleet had no access to Grill'd sales data and no way to verify how many burgers were actually sold through the promotion.
Grill'd's history of controversy
This isn't Grill'd's first legal headache. The chain, which runs nearly 180 restaurants across Australia, has faced multiple disputes over pay and working conditions in the past decade. It's currently defending a class action for allegedly denying workers 10-minute paid breaks.
Grill'd CEO Simon Crowe told reporters he stands behind the company's ethics. "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 of."
The ACCC is asking the Federal Court to impose significant penalties and order Grill'd to make a mandatory donation matching what consumers were promised. If the regulator wins, Grill'd could be forced to donate millions — the exact amount will depend on the court's calculation of how many burgers should have triggered donations.
The case is a warning to any business using feel-good environmental claims to sell products. As Cass-Gottlieb put it, companies need to be accurate and disclose all qualifications when appealing to consumers' environmental concerns.