DoorDash fined $2M for spamming one million Aussies.
DoorDash Fined $2 Million for Spamming Australians
U.S. food delivery giant DoorDash has been hit with a hefty $2 million (US$1.3 million) fine for bombarding Australians with over one million unwanted text messages and emails.
The Australian Communications and Media Authority (ACMA) launched an investigation into DoorDash following numerous complaints from customers and potential drivers.
During the investigation, it was discovered that between February and October 2022, DoorDash sent over 566,000 emails to customers who had already unsubscribed, and 515,000 texts without an unsubscribe function to individuals inquiring about or in the process of becoming delivery drivers.
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This blatant disregard for Australian spam rules, which require commercial promotional content to include an unsubscribe function, has resulted in the hefty fine.
The investigation also revealed that DoorDash falsely labeled its texts as purely factual, attempting to evade spam regulations. However, these messages were indeed commercial in nature, as they contained offers and incentives to promote the delivery driver position.
ACMA Chair Nerida O’Loughlin expressed frustration with businesses like DoorDash that continue to violate spam regulations, stating, “Australians find it incredibly frustrating when they receive marketing messages from businesses like DoorDash after they have taken the time to unsubscribe.”
O’Loughlin emphasized the need for all businesses engaged in email and text marketing to review their spam compliance in light of this penalty.
On the Lookout for Spam
Ensuring spam compliance remains a top priority for the communications watchdog.
DoorDash has paid the $2,011,320 penalty and will undergo a three-year independent review of its spam rule compliance. The company is also required to make necessary improvements and regularly report to ACMA.
A spokesperson for DoorDash attributed the spam messages to a technical error, stating, “DoorDash remains committed to working with all parties to best serve our customers and Dashers [contract drivers], and takes seriously its legal obligations under the Spam Act and all applicable laws.”
This incident adds to a growing list of infringement notices issued to major Australian businesses for spam rule violations, including Commonwealth Bank ($3.5 million), mycar Tyre & Auto ($1 million), and Sportsbet ($2.5 million).
ACMA’s investigation into Commonwealth Bank found that the bank had sent over 61 million emails that unlawfully required customers to log in to unsubscribe, with an additional four million sent without a functioning unsubscribe option.
O’Loughlin expressed alarm at the scale of Commonwealth Bank’s non-compliance, stating, “The failure to fix the issues shows a complete disregard for the spam rules and the rights of its customers.”
The penalty imposed on Commonwealth Bank for breaching spam laws is the largest to date.
“We will be closely monitoring the Commonwealth Bank’s compliance,” O’Loughlin added.
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