Pizza Hut hit with $2.5 million penalty for bombarding customers with texts and emails
- Replies 11
In a world where our inboxes and phones are constantly bombarded with marketing messages, it's no surprise that regulations are in place to protect us from the relentless tide of unwanted communications.
However, it seems that not all companies are following the recipe for respectful advertising, as Pizza Hut recently discovered to its cost.
The well-known pizza chain has been fined $2.5 million by the Australian Communications and Media Authority (ACMA) for what can only be described as a spam feast.
Between January and May 2023, Pizza Hut sent out nearly six million texts and emails to customers who had either not consented to receive these ads or had explicitly opted out of their marketing communications.
But the topping on this unsavoury pizza was the additional four million messages that lacked an essential ingredient: an unsubscribe option.
This oversight left customers with no easy way to say 'no more' to the barrage of promotional material.
Samantha Yorke from ACMA minced no words when she described Pizza Hut's practices as ‘supremely egregious’.
‘The spam rules have been in place for more than 20 years, and there is simply no excuse for failing to uphold the rights of customers,’ she said.
‘It is particularly disappointing when well-known businesses with large customer bases fail to meet their obligations in the way Pizza Hut has.’
But the saga of spam didn't end with the fines.
Some customers reported that they continued to receive unwanted messages even after attempting to unsubscribe multiple times.
In response to the ACMA's findings, Pizza Hut has agreed to a three-year court-enforced undertaking.
The company will bring in an independent consultant to review its adherence to spam rules and will be required to submit regular reports to ACMA to ensure they stay on the straight and narrow.
Additionally, Pizza Hut must also report to ACMA on a regular basis.
Ms Yorke said: ‘We help people who receive unwanted spam by cracking down on businesses that don’t comply with the direct marketing laws.’
‘The penalties for breaching can be very serious and all companies that conduct e-marketing should check their compliance systems are working effectively so they’re not spamming customers,’ she added.
ACMA's recent action against Pizza Hut is part of its ongoing enforcement efforts, which have also targeted companies such as DoorDash, Ticketek, Uber, and Kmart.
Last month, Luxottica, owner of eyewear brands like OPSM, Sunglass Hut, Ray-Ban, and Oakley, was fined $1.5 million for breaching Australian spam laws by sending over 200,000 marketing messages without an unsubscribe option.
As a result of the authority's enforcement of spam rules, fines totalling over $15 million have been issued in the past 18 months.
For our readers, this case is a reminder to be vigilant about where and how you share your contact information.
Always look for the unsubscribe option in marketing messages, and don't hesitate to report spam to the authorities if a company is not respecting your wishes.
Have you had a similar experience with unwanted marketing messages? How do you manage it? Share your thoughts and tips in the comments below!
However, it seems that not all companies are following the recipe for respectful advertising, as Pizza Hut recently discovered to its cost.
The well-known pizza chain has been fined $2.5 million by the Australian Communications and Media Authority (ACMA) for what can only be described as a spam feast.
Between January and May 2023, Pizza Hut sent out nearly six million texts and emails to customers who had either not consented to receive these ads or had explicitly opted out of their marketing communications.
Pizza Hut was fined $2.5 million due to spam texts and emails. Image source: Shutterstock
But the topping on this unsavoury pizza was the additional four million messages that lacked an essential ingredient: an unsubscribe option.
This oversight left customers with no easy way to say 'no more' to the barrage of promotional material.
Samantha Yorke from ACMA minced no words when she described Pizza Hut's practices as ‘supremely egregious’.
‘The spam rules have been in place for more than 20 years, and there is simply no excuse for failing to uphold the rights of customers,’ she said.
‘It is particularly disappointing when well-known businesses with large customer bases fail to meet their obligations in the way Pizza Hut has.’
But the saga of spam didn't end with the fines.
Some customers reported that they continued to receive unwanted messages even after attempting to unsubscribe multiple times.
In response to the ACMA's findings, Pizza Hut has agreed to a three-year court-enforced undertaking.
The company will bring in an independent consultant to review its adherence to spam rules and will be required to submit regular reports to ACMA to ensure they stay on the straight and narrow.
Additionally, Pizza Hut must also report to ACMA on a regular basis.
Ms Yorke said: ‘We help people who receive unwanted spam by cracking down on businesses that don’t comply with the direct marketing laws.’
‘The penalties for breaching can be very serious and all companies that conduct e-marketing should check their compliance systems are working effectively so they’re not spamming customers,’ she added.
ACMA's recent action against Pizza Hut is part of its ongoing enforcement efforts, which have also targeted companies such as DoorDash, Ticketek, Uber, and Kmart.
Last month, Luxottica, owner of eyewear brands like OPSM, Sunglass Hut, Ray-Ban, and Oakley, was fined $1.5 million for breaching Australian spam laws by sending over 200,000 marketing messages without an unsubscribe option.
As a result of the authority's enforcement of spam rules, fines totalling over $15 million have been issued in the past 18 months.
For our readers, this case is a reminder to be vigilant about where and how you share your contact information.
Always look for the unsubscribe option in marketing messages, and don't hesitate to report spam to the authorities if a company is not respecting your wishes.
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