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National auto repair retailer mycar Tyre & Auto has been hit with a $1 million fine over spam messages after the communications watchdog found the company sent marketing materials without a functioning “unsubscribe” button.
The Australian Communications and Media Authority (ACMA) said on Wednesday that the company has paid a $1,047,000 penalty after an investigation of more than 1 million messages it sent to customers between January and August 2022.
Australian Communications and Media Authority chair Nerida O’Loughlin said sending text messages without an option to unsubscribe was unacceptable. Credit: Rhett Wyman
These included 1.45 million text messages and emails sent to customers without a functioning “unsubscribe” option.
The business also sent 276,000 emails that required a user to supply their vehicle registration details to opt out of future messages and sent 5000 messages to consumers who had already asked to opt out of receiving marketing materials.
The company has paid the fine and entered a three-year enforceable undertaking with the regulator promising to review its e-marketing practices and provide regular compliance reports to the watchdog.
ACMA Chair Nerida O’Loughlin said customers had been frustrated by the experience of not being able to opt out of commercial messages from the company.
“This is unacceptable, especially from a well-established national retailer,” she said.
“The action taken by the ACMA on this matter, as well as our recent action against the Commonwealth Bank, sends a strong message that we will continue to hold businesses to account for spam breaches.”
Mycar Tyre & Auto was formerly known as Kmart Tyre & Auto, but Wesfarmers sold the business to AG Continental in 2018.
A mycar spokesperson said the company welcomed further engagement with the regulator “to ensure the experiences we deliver our customers are market leading”.
“Mycar accepts the findings by the ACMA and has co-operatively worked with the regulator throughout the investigation and the development of the enforceable undertaking,” they said.
Australia’s consumer watchdogs are placing increasing scrutiny on companies when it comes to how they message their customers, and whether shoppers can easily unsubscribe from communications or services. 
Earlier this month, the Commonwealth Bank was hit with a record $3.55 million fine over more than 65 million emails, including marketing materials that prompted users to log in on its website if they wanted to unsubscribe. 
Under the Spam Act 2003, marketing materials must contain a function to unsubscribe from a list, and this must function appropriately. It’s also generally against the rules to prompt a user to enter log in details or provide personal information if they want to unsubscribe.
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