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Greenwashing Goes to Court: ACCC v Grill’d and the June 2026 Roundup

June 2026 was the month greenwashing stopped being a marketing question and became a
litigation risk. It was also a month of merger decisions, a minimum wage rise and a set of
consumer protection moves that reach directly into how franchise networks price and
advertise.

ACCC v Grill’d

The ACCC commenced Federal Court proceedings against Grill’d over its Tree Day Tuesday
promotion, alleging customers were misled about donations. The case is the clearest signal
yet that environmental and social impact claims made in marketing need evidence behind them
before they are published.

For a franchise network the exposure is structural. Marketing is usually run centrally by
the franchisor, but the claims appear at franchisee level, on menu boards and in stores. If a
claim cannot be substantiated, the network carries it everywhere at once.

The practical test is simple. For every environmental or social claim in your marketing,
can you produce the evidence today, without preparing it? If not, the claim should not be
running.

Misleading conduct more broadly

The ACCC also took Microsoft to court over allegedly misleading millions of Australians
about Microsoft 365 pricing, published new guidance on unfair business practices, and
accepted penalties from Doreen Egg over allegedly false claims and from the online travel
agency eDreams. Online marketplaces separately pledged to do more to protect consumers.

The through line is pricing and representation. Subscription pricing, drip pricing and
claims made at the point of sale are where the regulator is concentrating.

Mergers and acquisitions

  • Ampol and EG Australia. Approved, subject to conditions.
  • Peter Warren and Wakeling Automotive. Referred to a Phase 2 review.
  • Coles in Kalgoorlie. The ACCC opposed the acquisition of a supermarket
    and liquor site.
  • Collins Foods. Completed its German KFC restaurant acquisition, a
    reminder that Australian franchise groups are buying offshore as well as at home.

Three different outcomes from one regulator in one month. Merger risk in retail and fuel
is now genuinely unpredictable, which makes early competition advice cheaper than a failed
transaction.

Horticulture Code penalties

Fruitico and Fresh Express paid record penalties and the ACCC called for a stronger
Horticulture Code. Mandatory industry codes are being enforced harder across the board, not
only in franchising.

Employment and cost

The minimum wage rose 4.75 per cent. Victoria’s proposed work from home legislation drew
criticism from employer groups as unworkable. Australia’s first music school empire collapsed
owing $1.8 million, and Barbeques Galore announced closures affecting up to 500 jobs.

Wage increases flow straight through to franchisee margins in labour intensive networks.
Where an operations manual sets minimum staffing levels, the franchisor is effectively
setting the franchisee’s largest cost.

Scams targeting franchise owners

Reporting through June identified franchise owners being targeted by SMS scams. Networks
should tell franchisees, in writing, exactly how head office will and will not contact them
about payments.

What this means for your network

  1. Audit every environmental and social claim in your marketing and confirm you can
    substantiate each one today.
  2. Review subscription, drip and point of sale pricing against the ACCC’s unfair business
    practices guidance.
  3. Get competition advice before signing an acquisition in retail, fuel or automotive.
  4. Model the wage increase against any staffing levels your operations manual mandates.
  5. Put your payment contact protocol in writing to franchisees.

If any of this touches a decision you are about to make,
get in touch. Initial consultation is
complimentary.

Sources: ACCC on Grill’d,
ACCC media releases,
Fair Work Commission.
This article is general information, not legal advice.

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