The Australian Communications and Media Authority mentioned complaints from clients and would-be supply drivers sparked an investigation into the American firm.
The telecommunications regulator discovered DoorDash despatched greater than 566,000 promotional emails to clients that had unsubscribed and 515,000 texts to individuals who’d appeared into changing into supply drivers.
ACMA chair Nerida O’Loughlin mentioned companies ought to know higher.
“Australians find it incredibly frustrating when they receive marketing messages from businesses like DoorDash after they have taken the time to unsubscribe,” she mentioned.
The texts to potential drivers did not embody any option to unsubscribe, which is a breach of the Spam Act.
ACMA discovered DoorDash had mischaracterised them as being “solely factual” and out of doors the spam guidelines however they really included business elements comparable to gives and incentives.
“When messages include this kind of content they are considered commercial under spam rules and must include an unsubscribe facility,” Ms O’Loughlin mentioned.
“DoorDash is a large business conducting high-volume marketing so there is no excuse for non-compliance.
“This is an extra warning to all companies that have interaction in e mail and SMS advertising and marketing that now could be the time to evaluation your spam compliance.”
DoorDash must also appoint an independent consultant to review and improve its spam compliance, with regular reports to ACMA.
DoorDash’s $2,011,320 fine works out to roughly $1.86 per text or email, which is a harsher rate than those other companies but not necessarily directly comparable.
It’s not the only food delivery app to run into legal trouble.
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Source: www.9news.com.au
