Food delivery giant DoorDash has been slapped with a hefty $2 million fine for violating Australian spam regulations, following an investigation by the Australian Communications and Media Authority (ACMA). The investigation found that DoorDash had sent out more than a million unsolicited texts and emails to its customers and potential contractors, a move that runs afoul of the country’s spam rules.
During the period between February and October 2022, DoorDash reportedly dispatched over 566,000 promotional emails to its customers, and more than 515,000 text messages to potential drivers without including an easy unsubscribe option. Such practices are in direct violation of Australian law designed to protect consumers from unwanted communication.
ACMA Chair Nerida O’Loughlin highlighted the frustration of Australians when receiving unwanted marketing messages, especially after they have gone through the process of unsubscribing. O’Loughlin emphasized that DoorDash’s actions are not acceptable and that the penalty serves as a stern warning for all businesses to ensure their compliance with spam regulations.
“There is no excuse for non-compliance,” O’Loughlin stated. She further noted that the significant penalty imposed on DoorDash should serve as a cautionary tale to other businesses about the importance of adhering to spam compliance regulations.
The recent fine adds to a string of penalties that businesses have faced for breaches of spam and telemarketing laws in Australia. The ACMA reported that over the last 18 months, companies have collectively paid more than $10 million in penalties for violating these regulations. This trend underscores the importance of adhering to such laws and maintaining respectful and responsible communication practices in the business world.