DoorDash hit with $2m fine by ACMA for breaching spam laws – ABC News

DoorDash hit with $2m fine by ACMA for breaching spam laws
Online food delivery service DoorDash has been slapped with a $2 million fine for breaching spam rules. 
An investigation by the Australian Communications and Media Authority (ACMA) found DoorDash sent more than 1 million texts and emails that breached spam regulations between February and October last year.
The communications watchdog found more than 566,000 promotional emails were sent to customers who had unsubscribed from the messages.
A further 515,000 text messages had also been sent to prospective drivers for DoorDash without an option to unsubscribe.
The authority's chair Nerida O'Loughlin said the investigation started after the watchdog received multiple complaints from customers.
"Australians find it incredibly frustrating when they receive marketing messages from businesses like DoorDash after they have taken the time to unsubscribe," Ms O'Loughlin said.
"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."
DoorDash said a technical error was partly responsible for the messages being sent out.
"DoorDash remains committed to working with all parties to best serve our customers and [contractors], and takes seriously its legal obligations under the Spam Act and all applicable laws," a spokesperson said.
"The investigation was the product of [contractor] onboarding communications that were mistaken for transactional messages and a technical error in our consumer messaging system that has since been remediated."
DoorDash will be required to appoint an independent consultant to oversee the company's compliance with spam rules, as part of a three-year court-enforceable undertaking.
It will have to make regular reports to the watchdog.
The investigation revealed the food delivery company had mischaracterised its text messages to prospective contractors as being factual.
Ms O'Loughlin said while factual texts are outside of the spam laws, the messages contained offers and incentives that promoted becoming a driver for DoorDash.
"When messages include this kind of content they are considered commercial under spam rules and must include an unsubscribe facility," she said.
"DoorDash is a large business conducting high-volume marketing so there is no excuse for non-compliance. This is a further warning to all businesses that engage in email and SMS marketing that now is the time to review your spam compliance."
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