Uber Australia Fined for Spam Emails Violation

Uber Australia has been ordered to pay a fine of $412,500 for breaching Australian spam laws. The decision comes after an investigation conducted by the Australian Communications and Media Authority (ACMA). The rideshare and food delivery company was found guilty of sending over two million unsolicited marketing emails to customers in a single day.

Failure to Provide Unsubscribe Option

The spam emails were part of an advertising campaign for an alcohol home delivery service. They were sent to over 500,000 customers who had already opted out of receiving such communications. The emails violated the law as they failed to provide an unsubscribe option for receivers. ACMA found that Uber had misclassified these emails as non-commercial, leading to this breach.

ACMA chair Nerida O’Loughlin condemned Uber’s actions, stating it’s unacceptable for a company conducting high volume marketing not to have robust systems in place to handle consumer messages accurately and consistently. She further emphasised that consumers are frustrated with their wishes being ignored, and they expect to have control over who contacts them for marketing purposes.

Breaching The Spam Act

The Spam Act mandates that businesses must have the recipient’s consent before sending direct electronic marketing messages. Furthermore, these messages should contain an option for the recipient to unsubscribe.

O’Loughlin warned that the ACMA will not hesitate to take stronger action against Uber or any other business not complying with these requirements in the future. She urged all businesses engaged in e-marketing to actively and regularly review their practices to ensure compliance.

ACMA Crackdown on Spam Act Compliance

ACMA’s action against Uber is part of a broader crackdown on Spam Act compliance. In the last 18 months, Australian businesses have paid a total of $11 million in fines for breaches related to spam and telemarketing. Other companies that have faced similar actions include Ticketek, DoorDash, and CommBank. O’Loughlin expressed particular concern about direct marketing involving gambling, alcohol, and ‘buy-now, pay-later’ products and services, which could potentially harm vulnerable individuals.