DoorDash fined $2m for sending more than a million spam emails and texts

Food delivery service DoorDash has been fined $2 million for more than million spam emails and text messages sent to drivers and customers in 2022, following an investigation by the Australian Communications and Media Authority (ACMA).

The ACMA probe was prompted by complaints received from DoorDash customers as well as people who had inquired about or commenced the process to become delivery drivers.

It found that between February and October 2022, DoorDash sent more than 566,000 promotional emails to customers who had unsubscribed from these messages and sent more than 515,000 texts without an unsubscribe facility to prospective drivers.

ACMA revealed today that the company has paid a fine of $2.011 million following its findings that DoorDash had breached Australian spam rules.

ACMA chair Nerida O’Loughlin says spam compliance is an ongoing priority as the agency continues to find breaches across businesses that ‘should know better’.

“Australians find it incredibly frustrating when they receive marketing messages from businesses like DoorDash after they have taken the time to unsubscribe,” O’Loughlin says.

“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.”

ACMA’s investigation revealed DoorDash had mischaracterised texts sent to prospective contractors as being solely factual in nature, and therefore outside the scope of the spam rules.

The messages contained commercial aspects, such as offers and incentives intended to promote a business opportunity as a delivery driver.

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

“DoorDash is a large business conducting high-volume marketing so there is no excuse for non-compliance. 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.”

In addition to the fine, ACMA has also accepted a three-year court-enforceable undertaking from DoorDash to appoint an independent consultant to review its compliance with spam rules and to make improvements where needed. DoorDash must also report regularly to ACMA.

This latest action follows a raft of enforcement actions by ACMA over the past year, including a penalty of over $3.55 million paid by the Commonwealth Bank (ASX: CBA) in June 2023.