‘There is no excuse’: Kmart hit with a whopping $1.3 million fine
- Replies 4
Spam emails, or unwarranted electronic messages, are a nuisance that many would love to do without. It's the digital equivalent of those unsolicited leaflets that used to clutter up our letterboxes.
But imagine clicking that 'unsubscribe' button, hoping to stop the influx of these pesky messages, but to no avail.
For many Kmart customers, this was their reality for nearly a year, leading to an outpour of consumer complaints.
Between July 2022 and May 2023, Kmart has reportedly sent out 212,471 emails to Kmart customers despite opting out of their email notifications.
This flagrant violation of their rights led the Australian Communications and Media Authority (ACMA) to launch an in-depth investigation into Kmart's practices. They determined that a 'combination of technology, system and procedural failures' were to blame for the infractions.
The discount retailer was eventually charged with a hefty $1.3 million fine following its breach of Australian spam laws on marketing emails sent to its customers.
Nerida O’Loughlin, ACMA Chair, articulated the growing sense of frustration among customers over big corporations trespassing on their privacy.
'When a customer decides to opt out of a marketing mailing list, businesses are obliged to fulfil that request,' she said.
'The rules have been in place for nearly 20 years, and there is simply no excuse.'
According to O'Loughlin, Kmart’s case was particularly momentous, saying: 'Kmart’s case is particularly concerning as it went on for such a significant period.'
She revealed that Kmart had received multiple warnings from ACMA about potential compliance issues prior to the official investigation being undertaken.
'Kmart was given more than enough notice it may have a compliance issue, and it should have done more to address its problems before we had to step in and investigate.'
As part of the penalty package, Kmart is now obliged to hire an independent consultant to oversee its compliance with spam rules in the future, ensuring that all preventative measures are rigorously upheld.
The store will also be required to submit regular reports to ACMA about its ongoing communications.
Kmart's scandalous saga is just the latest in a string of companies who have allegedly breached spam laws.
The list includes DoorDash, Ticketek and Uber.
Commonwealth Bank recently made headlines for infringing the same laws with an astonishing 65 million emails sent to customers, resulting in a $3.55 million fine.
This news comes after ALDI was reportedly hit with a lawsuit and now faces a $150 million claim in unpaid wages it supposedly ‘systematically’ withheld from tens of thousands of its workers across the country.
The allegation came from the Shop, Distributive and Allied Employees Association (SDA)—Australia’s largest private trade sector union—who lodged the claim in Federal Court on October 26.
They claimed that ALDI employees were forced to work on tasks such as emptying the bins, checking communication devices, performing safety checks, and cashing up the register around 30 minutes before the start of their shift and were not paid for doing so.
You can read more about this news here.
Members, what are your thoughts on this latest news? Let us know in the comments below!
But imagine clicking that 'unsubscribe' button, hoping to stop the influx of these pesky messages, but to no avail.
For many Kmart customers, this was their reality for nearly a year, leading to an outpour of consumer complaints.
Between July 2022 and May 2023, Kmart has reportedly sent out 212,471 emails to Kmart customers despite opting out of their email notifications.
This flagrant violation of their rights led the Australian Communications and Media Authority (ACMA) to launch an in-depth investigation into Kmart's practices. They determined that a 'combination of technology, system and procedural failures' were to blame for the infractions.
Despite opting out of marketing emails from Kmart, customers still received such emails for almost a year. Image source: Freepik.
The discount retailer was eventually charged with a hefty $1.3 million fine following its breach of Australian spam laws on marketing emails sent to its customers.
Nerida O’Loughlin, ACMA Chair, articulated the growing sense of frustration among customers over big corporations trespassing on their privacy.
'When a customer decides to opt out of a marketing mailing list, businesses are obliged to fulfil that request,' she said.
'The rules have been in place for nearly 20 years, and there is simply no excuse.'
According to O'Loughlin, Kmart’s case was particularly momentous, saying: 'Kmart’s case is particularly concerning as it went on for such a significant period.'
She revealed that Kmart had received multiple warnings from ACMA about potential compliance issues prior to the official investigation being undertaken.
'Kmart was given more than enough notice it may have a compliance issue, and it should have done more to address its problems before we had to step in and investigate.'
As part of the penalty package, Kmart is now obliged to hire an independent consultant to oversee its compliance with spam rules in the future, ensuring that all preventative measures are rigorously upheld.
The store will also be required to submit regular reports to ACMA about its ongoing communications.
Kmart's scandalous saga is just the latest in a string of companies who have allegedly breached spam laws.
The list includes DoorDash, Ticketek and Uber.
Commonwealth Bank recently made headlines for infringing the same laws with an astonishing 65 million emails sent to customers, resulting in a $3.55 million fine.
This news comes after ALDI was reportedly hit with a lawsuit and now faces a $150 million claim in unpaid wages it supposedly ‘systematically’ withheld from tens of thousands of its workers across the country.
The allegation came from the Shop, Distributive and Allied Employees Association (SDA)—Australia’s largest private trade sector union—who lodged the claim in Federal Court on October 26.
They claimed that ALDI employees were forced to work on tasks such as emptying the bins, checking communication devices, performing safety checks, and cashing up the register around 30 minutes before the start of their shift and were not paid for doing so.
You can read more about this news here.
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