Pizza money

Pizza Hut Australia slapped with $2.5m fine for breaching spam laws

The Australian Communications and Media Authority (ACMA) has issued Pizza Hut Australia a hefty $2,502,500 fine for breaching Australian spam laws, following an investigation into more than 10 million marketing messages across a four-month period from January to May 2023.

ACMA's investigation revealed that Pizza Hut Australia sent 5,941,109 texts and emails to customers who had not consented or had withdrawn their consent to receive marketing. Additionally, the company sent 4,364,971 marketing messages without an option to unsubscribe.

In response to the breach, ACMA has accepted a three-year court-enforceable undertaking from Pizza Hut Australia. The company has committed to appoint an independent consultant to review its compliance with the rules and make necessary improvements. Regular reports must also be submitted to ACMA.

"The public expects more from businesses who are using their data. They have a right not to be sent marketing messages if they haven’t consented or have chosen to unsubscribe. The spam rules have been in place for over 20 years and there is simply no excuse for failing to uphold the rights of consumers. It is particularly disappointing when well-known businesses with large customer bases fail to meet their obligations in the way Pizza Hut has," said ACMA member, Samantha Yorke.

Enforcement of the spam unsubscribe rules is a current ACMA compliance priority, with recent actions also taken against Luxottica, Outdoor Supacentre, DoorDash, Ticketek, Uber and Kmart. Over the last 18 months, businesses have paid more than $15 million in spam and telemarketing penalties.

"We help people who receive unwanted spam by cracking down on businesses that don’t comply with the direct marketing laws. The penalties for breaching can be very serious and all companies that conduct e-marketing should check their compliance systems are working effectively so they’re not spamming customers," Yorke said.

Source: Mi3, 27 May 2024

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