DoorDash cops $2m fine for spam text messages to customers and contractors

A popular food delivery service has copped a whopping fine for its “incredibly frustrating” behaviour.

Silicon Valley online food delivery behemoth DoorDash has paid out a $2m fine for breaching Australia’s spam rules. Picture: Michael M. Santiago / AFP)

Online food delivery behemoth DoorDash has paid out a $2m fine for breaching Australia’s spam rules.

The Australian Communications and Media Authority slapped the company with an infringement notice after it was found to have sent more than 566,000 promotional emails to customers who had unsubscribed from the messages and more than 515,000 texts to prospective drivers, who received the texts without any 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.”

DoorDash was found to have more than 515,000 texts to prospective drivers, who received the texts without any option to unsubscribe from them. Picture: Monique Harmer / NCA NewsWire

ACMA investigated the $31.4bn 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.

Silicon Valley start-up DoorDash went public in 2020 and now boasts a market capitalisation of 31.4bn. It has operations in 60 cities across Australia Picture: Michael Nagle/Bloomberg

“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.”

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 $10m in penalties for breaching spam and telemarketing laws.