Uber Australia has been hit with a substantial fine after an investigation by the Australian Communications and Media Authority (ACMA) uncovered multiple violations of spam laws.
Following similar actions against companies like Ticketek, DoorDash, and CommBank, ACMA imposed a hefty penalty of $412,500 on the rideshare and food delivery giant. The investigation revealed that Uber sent over two million marketing emails to customers in a single day in January 2023, promoting an alcohol home delivery service.
These emails lacked an unsubscribe option and were dispatched to more than 500,000 customers who had previously opted out.
An Uber mess
ACMA chair Nerida O’Loughlin is extremely dissatisfied with Uber’s breach, especially considering the company’s significant marketing presence.“In this case, an avoidable error has led to more than two million messages being sent without a way for people to unsubscribe,” O’Loughlin says.
“This error was compounded by the fact that half a million of those messages were sent to people who had previously opted out. Consumers are fed up with their wishes not being respected. People rightly expect to have choice over who contacts them for marketing purposes,” she continues.
It’s important for brands operating in the region to understand consumers’ rights to have their preferences respected. They have a choice of who contacts them for marketing purposes, according to O’Loughlin.
The Spam Act
Under the Spam Act, businesses must obtain consent before sending direct electronic marketing messages and allow recipients to unsubscribe from the messages.
The ACMA has warned all businesses engaged in e-marketing, urging them to review their practices for compliance regularly. For now, it remains vigilant, monitoring Uber’s adherence to regulations and standing ready to enforce more robust measures if needed.
This crackdown is part of a broader initiative to limit the spam that reaches Australian inboxes. It has resulted in Australian businesses paying substantial penalties totaling $11 million for spam and telemarketing breaches over the past 18 months.
Any direct marketing involving potentially harmful sectors like gambling, alcohol, and ‘buy-now, pay-later’ products and services, especially when targeting vulnerable individuals, are monitored.
People’s choice
“This error was compounded by the fact that half a million of those messages were sent to people who had previously opted out.
“Consumers are fed up with their wishes not being respected. People rightly expect to have choice over who contacts them for marketing purposes,” O’Loughlin concludes. As regulatory scrutiny intensifies, businesses are urged to uphold consumer rights and adhere strictly to the law, lest they face severe consequences for non-compliance.
About the author
Marce has contributed tech to various prominent publications since 2018, offering a transparent perspective into the tech industry and its effects on its users. She now spends her time developing insightful content for industry players. You know, when she's not gaming or geeking out about the latest fad.
