U.S. food delivery giant DoorDash has been fined $2 million (US$1.3 million) for sending over one million text messages and emails to Australians.
The Australian Communications and Media Authority (ACMA) launched an investigation into the company following complaints from customers and potential drivers.
It found that between February and October 2022, the service sent over 566,000 emails to customers who had already unsubscribed, and 515,000 texts without an unsubscribe function to people who inquired about or were in the process of becoming a delivery driver.
Food delivery platform DoorDash has paid a $2,011,320 infringement notice for sending over one million texts and emails which breached Australian spam rules.
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The investigation also found that the food delivery service mischaracterised its texts as being solely factual, which would place it outside spam rules. However, the text messages were commercial because they contained offers and incentives intended to promote the delivery driver position.
ACMA Chair Nerida O’Loughlin said the agency continues to find spam breaches across businesses that “should know better.”
“It is unacceptable that DoorDash’s prospective contractors were sent messages without an unsubscribe facility about a business opportunity that they may not have wished to pursue.”
She said this also served as a warning to all businesses that have email and text marketing that it was time to review their spam compliance.
On the Lookout for Spam
Spam compliance is an ongoing priority for the communications watchdog.DoorDash has paid the $2,011,320 penalty, will conduct a three-year independent review into its compliance with spam rules and make improvements where necessary, and must regularly report to ACMA.
A spokesperson for DoorDash said a technical error had been the reason behind all the spam messages.
“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,” the spokesperson said.
“The investigation was the product of Dasher onboarding communications that were mistaken for transactional messages and a technical error in our consumer messaging system that has since been remediated.”
It follows a string of other infringement notices for other major Australian businesses for breaking spam rules, including Commonwealth Bank ($3.5 million), mycar Tyre & Auto ($1 million), and Sportsbet ($2.5 million).
ACMA investigation found that Commonwealth Bank had sent over 61 million emails that unlawfully required customers to log in to unsubscribe. Another four million were sent without a working unsubscribe function.
Ms. O’Loughlin said that the scale of the bank’s non-compliance was “alarming” given the ACMA issued early warnings.
“The failure to fix the issues shows a complete disregard for the spam rules and the rights of its customers,” Ms. O’Loughlin said in June.
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 and the commitments it has made to review its practices. If we find future non-compliance, we will not hesitate to take further action,” Ms. O’Loughlin said.
Over the last 18 months, businesses have paid over $10 million in fines for breaching spam and telemarketing laws.
