Kmart Australia Limited has paid a $1,303,500 infringement notice for sending more than 200,000 marketing emails in breach of Australian spam laws.
The Australian Communications and Media Authority (ACMA) opened an investigation following consumer complaints and found Kmart sent 212,471 messages to customers between July 2022 and May 2023 who had previously unsubscribed. The investigation found that the breaches occurred due to a combination of technology, system and procedural failures.
ACMA chair Nerida O’Loughlin said people are frustrated and angry with big brands intruding on their privacy by not respecting their wishes to unsubscribe.
“When a customer decides to opt out of a marketing mailing list, businesses are obliged to fulfil that request. The rules have been in place for nearly 20 years and there is simply no excuse," she said.
"Kmart’s case is particularly concerning as it went on for such a significant period."
Kmart said: "We regret that any customers received emails from Kmart when they had opted out. These issues should not have occurred, and we are actively working to strengthen our systems."
The ACMA alerted Kmart on multiple occasions it may have issues with its consumer marketing.
“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," O'Loughlin said.
The spam rules require businesses to have consent from consumers to conduct e-marketing, and, when they receive an unsubscribe request, it must be actioned.
On top of the financial penalty, the ACMA has also accepted a comprehensive two-year court-enforceable undertaking from Kmart committing it to appoint an independent consultant to review its compliance with spam rules and to make improvements where needed. Kmart must also report regularly to the ACMA.
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