DoorDash pays more than $2m for spam breaches after investigation by ACMA

An ACMA investigation found the food delivery platform sent more than one million non-compliant messages to customers and prospective drivers.

Food delivery platform DoorDash has paid more than $2m in fines for breaching Australia’s spam rules, following a watchdog investigation that found it sent more than one million non-compliant texts and emails.

Following numerous consumer complaints, an investigation by Australia’s communications regulator, ACMA, found that DoorDash last year sent more than 566,000 promotional emails to customers who had unsubscribed, and more than 515,000 texts without an unsubscribe option to prospective drivers.

The investigation found DoorDash had mischaracterised texts to those prospective drivers as being factual, and therefore outside the scope of Australia’s spam rules, when the messages contained commercial aspects including offers and incentives.

“When messages include this kind of content they are considered commercial under spam rules and must include an unsubscribe facility,” ACMA chair Nerida 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.”

A DoorDash spokeswoman said the message were sent due to a technical error.

Ms O’Loughlin said ACMA continued to find breaches across businesses that “should know better”.

She said spam compliance was a priority for the watchdog. In addition to the financial penalty, the ACMA has also accepted a comprehensive three-year court-enforceable undertaking from DoorDash committing it to appoint an independent consultant to review its compliance with spam rules and to make improvements where needed.

Australian Communications and Media Authority chair Nerida O'Loughlin.

DoorDash must report regularly to ACMA.

Ms O’Loughlin said businesses have paid more than $10m in penalties for breaching spam and telemarketing laws during the past 18 months.

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

A DoorDash spokeswoman said the message were sent due to a technical error in the company’s messaging system.

DoorDash, UberEats and Menulog are the three largest food delivery companies operating in Australia. Deliveroo appointed voluntary administrators and exited the Australian market last year.

“DoorDash remains committed to working with all parties to best serve our customers and ‘dashers’, and takes seriously its legal obligations under the Spam Act and all applicable laws,” the spokeswoman told The Australian.

“The investigation was the product of dasher onboarding communications that were mistaken for transactional messages and a technical error in our consumer messaging system that has since been remediated.”