Australia's love affair with eco-friendly fast food may have hit a snag. The country's consumer watchdog has launched high-stakes court proceedings against Grill'd, the popular burger chain, over allegations of 'greenwashing' – or making unsubstantiated claims about its environmental credentials.
The Australian Competition and Consumer Commission (ACCC) has filed federal court action, accusing Grill'd of exaggerating the impact of its 'Tree Day Tuesday' campaign. The chain claimed that £1 from every burger sold on a Tuesday would be donated to tree planting, but the ACCC alleges that only about 4% of sales actually resulted in a donation due to complex terms and conditions.
The regulator claims Grill'd did not clearly disclose which purchases qualified for the £1 donation. In fact, customers had to dine-in at a front counter, be members of the chain's loyalty programme, and even meet specific purchase thresholds to qualify. Online orders, takeaway sales, and QR code transactions were excluded from the campaign.
ACCC Chair Gina Cass-Gottlieb has stated that the regulator views Grill'd's actions as a form of greenwashing, which can mislead consumers about the environmental benefits of their purchases. With 180 stores across Australia, Grill'd's conduct had significant implications for its customers and reputation.
This is not the first time Grill'd has faced scrutiny over employee pay and conditions, with allegations of underpaying young workers under a training programme loophole and a separate class action over unpaid rest breaks for staff. The current greenwashing allegations highlight growing global focus on environmental claims made by businesses and their potential to mislead consumers.
The ACCC's action against Grill'd reflects the increasing vigilance of consumer protection agencies towards companies' environmental marketing, as public awareness and concern for sustainability continue to rise. Businesses must now ensure their 'green' claims are accurate, transparent, and verifiable to avoid any potential to mislead consumers.