DoorDash fined $2 million after food delivery service sent spam emails to Australian customers
- DoorDash was fined $2 million
- It broke Australia’s spam rules
Online food delivery company DoorDash has paid a $2 million fine after frustrated customers complained about receiving “spam” emails.
The Australian Communications and Media Authority hit the company with a notice of infringement after DoorDash sent 566,000 promotional emails to customers who opted out of the service.
The ACMA also found that the delivery service sent more than 515,000 text messages to potential drivers without offering an option to opt out.
“Australians find it incredibly frustrating when they receive marketing messages from companies like DoorDash after taking the time to opt out,” said ACMA President Nerida O’Loughlin.
“It is unacceptable that DoorDash’s potential contractors have received communications with no opportunity to opt-out of a business opportunity they may not have wanted to pursue.”
The Australian Communications and Media Authority fined DoorDash $2 million after it sent 566,000 promotional emails to customers who opted out of the service
ACMA investigated the $31.4 billion Silicon Valley online ordering and delivery giant between February and October 2022 over customer complaints.
The investigation found that DoorDash had mischaracterized texts sent to potential contractors as being purely factual in nature and therefore outside the scope of the spam rules.
But ACMA said the messages contain commercial elements such as offers and incentives designed to promote a business opportunity to potential deliverers.
“When messages contain this type of content, they are considered commercial under spam rules and must include an opt-out option,” said Ms O’Loughlin.
“DoorDash is a large company doing large-scale marketing, so there is no excuse for non-compliance.
“This is a further warning to all email and SMS marketing companies that now is the time to review your spam compliance.”
The ACMA investigation found that DoorDash broke Australia’s spam rules by sending 515,000 text messages to potential drivers without any option to opt-out
DoorDash, which operates in 60 cities across Australia, has agreed to appoint an independent consultant to assess its compliance with spam rules.
ACMA said the agreement is “enforceable in court” and the company must also report regularly to the watchdog.
In the past 18 months, companies across the country have been charged more than $10 million in fines for violating spam and telemarketing laws.