Australia's competition watchdog said on Tuesday it had sued burger chain Grill'd, alleging the company misled customers about donations linked to an environmental marketing campaign.
The Australian Competition and Consumer Commission (ACCC) said it had filed proceedings in the Federal Court, alleging Grill'd made false or misleading representations during its "Tree Day Tuesday" promotion between January 2021 and April 2024.
Founded in 2004, Grill'd is a privately-owned fast-food restaurant operating more than 170 outlets across Australia.
The ACCC alleges Grill'd advertised that it would donate A$1 from every burger sold on a Tuesday towards tree planting, when in fact only a small proportion of purchases qualified due to inadequately disclosed conditions.
"We allege Grill’d misled customers by overstating the extent of the donations it would make and the environmental contributions from its Tree Day Tuesday promotion," said ACCC Chair Gina Cass-Gottlieb.
"We consider this to be a form of greenwashing."
Grill'd said in an emailed statement to Reuters that it has worked internally and with all stakeholders, including the ACCC, to ensure that brand and sustainability initiatives are clear.
The ACCC said over five million burgers were bought on a Tuesday between January 2021 and April 2024, but only around 4% of those purchases were actually eligible for the donation.
The case covers 26 advertisements across social media, online channels and in-store promotions, the regulator said, alleging that the burger chain had deprived its consumers of the ability to make an informed decision.
The ACCC is seeking declarations, penalties, costs and other orders.
"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,” ACCC's chair added.
