Online retailer Kogan Australia has paid a “substantial” $310,800 penalty for sending over 42 million marketing emails that recipients could not easily unsubscribe from.
Acting on consumer complaints, the Australian Communications and Media Authority (ACMA) said it “sent Kogan multiple compliance alerts” before commencing a formal investigation that ultimately found Kogan in breach of Australia’s spam laws.
The investigation found Kogan “sent more than 42 million marketing emails to consumers from which they could not easily unsubscribe.”
“Instead, Kogan required consumers to take additional steps setting a password and logging into a Kogan account,” the ACMA said.
“The ACMA found Kogan’s conduct breached the Spam Act, which requires commercial electronic messages to contain a functional unsubscribe facility.”
ACMA chair Nerida O’Loughlin said in a statement that Kogan’s breaches “affected millions of consumers.”
O’Louglin added that Kogan “fully cooperated with the ACMA in our investigation and took actions to update their unsubscribe facilities prior to its completion”.
In addition to the penalty, Kogan has entered a three-year court-enforceable undertaking, “requiring it to appoint an independent consultant to review its systems, processes and procedures, and to implement any recommendations from the review.”
“The undertaking also requires Kogan to train staff responsible for sending marketing messages and to regularly report back to the ACMA on actions taken in relation to consumer complaints,” the ACMA added.