DoorDash fined $2million after food delivery service sent spam emails to Australian customers

DoorDash fined $2million after food delivery service sent spam emails to Australian customers

• DoorDash was fined $2million
• It broke Australia’s spam rules 

By Ashley Nickel For Daily Mail Australia and Duncan Evans For Nca Newswire

Published: 23:13 BST, 15 August 2023 | Updated: 23:31 BST, 15 August 2023

Online food delivery giant DoorDash has paid a $2million fine after frustrated customers complained about receiving ‘spam’ emails. 

The Australian Communications and Media Authority slapped the company with an infringement notice after DoorDash sent 566,000 promotional emails to customers who had unsubscribed from the service.

The ACMA also found the delivery service sent more than 515,000 texts to prospective drivers without offering an option to unsubscribe from them.

‘Australians find it incredibly frustrating when they receive marketing messages from businesses like DoorDash after they have taken the time to unsubscribe,’ ACMA chair Nerida O’Loughlin said.

‘It is unacceptable that DoorDash’s prospective contractors were sent messages without an unsubscribe facility about a business opportunity that they may not have wished to pursue.’

The Australian Communications and Media Authority fined DoorDash $2million after it sent 566,000 promotional emails to customers who had unsubscribed from the service

ACMA investigated the $31.4billion Silicon Valley online ordering and delivery giant between February and October 2022 following customer complaints.

The investigation found DoorDash had mischaracterised texts sent to prospective contractors as being solely factual in nature and therefore outside the scope of spam rules.

But ACMA said the messages contained commercial elements such as offers and incentives intended to promote a business opportunity to potential delivery drivers.

‘When messages include this kind of content they are considered commercial under spam rules and must include an unsubscribe facility,’ Ms O’Loughlin said.

‘DoorDash is a large business conducting high-volume marketing so there is no excuse for noncompliance.

‘This is a further warning to all businesses that engage in email and SMS marketing that now is the time to review your spam compliance.’

The ACMA investigation found DoorDash had broken Australia’s spam rules by sending 515,000 texts to prospective drivers without any option to unsubscribe from them

DoorDash, which has operations in 60 cities across Australia, has agreed to appoint an independent consultant to review its compliance with spam rules.

ACMA said the agreement was ‘court-enforceable’ and the company must also regularly report to the watchdog.

In the past 18 months, businesses across the country have forked out more than $10million in penalties for breaching spam and telemarketing laws.

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