The online food delivery service DoorDash has been fined $2 million for breaching spam regulations.
The fine was imposed by the Australian Communications and Media Authority (ACMA) following an investigation that revealed DoorDash had sent over one million unauthorized texts and emails between February and October of the previous year.
The ACMA’s investigation found that DoorDash had sent more than 566,000 promotional emails to customers who had previously unsubscribed from receiving such messages.
Additionally, the company had sent around 515,000 text messages to potential drivers without providing an option to unsubscribe.
Nerida O’Loughlin, the chair of the ACMA, stated that the investigation was prompted by numerous complaints from customers who were frustrated by receiving marketing messages after opting out.
O’Loughlin emphasized that it was unacceptable for DoorDash to send messages to prospective contractors without an unsubscribe option, particularly about a business opportunity they might not have been interested in pursuing.
Spam compliance
As part of the punitive measures, DoorDash will be required to appoint an independent consultant to ensure the company’s compliance with spam rules.
This arrangement will be enforced by the court for a period of three years, during which DoorDash will need to provide regular reports to the ACMA.
The investigation highlighted that DoorDash had misrepresented its text messages to potential contractors as factual information.
O’Loughlin clarified that while factual messages fall outside the scope of spam laws, DoorDash’s messages contained offers and incentives aimed at encouraging individuals to become drivers for the platform.
“When messages include this kind of content they are considered commercial under spam rules and must include an unsubscribe facility,” O’Loughlin explained.
She further emphasized that DoorDash’s status as a large business involved in high-volume marketing left no room for non-compliance.
