Cellarmaster Wines has had to pay a $110,000 fine following an infringement notice by the Australian Communications and Media Authority (ACMA) for spamming. ACMA said it was a "wake up call" for companies using email marketing.
Cellarmaster Wines sent out over 3,000 emails in total, some without an opt-out facility and some to consumers who had already unsubscribed from its email promotions. The emails were promoting its website and were sent during May and July 2012.
This is a breach of Spam Act, which requires that all marketing emails are sent only with the consent of the recipient and provide an opportunity to opt out of receiving further messages.
For breaching the act Cellarmaster was slapped with a
$110,000 infringement notice from ACMA, which it has now paid. A spokesperson told AdNews
only a few other companies had received the same punishment, with
Tiger Airways and Virgin Australia two recent examples.
"[The
ruling] should be a wake up call for companies to make sure they have
their house in order when it comes to opt out facilities", the
spokesperson said.
ACMA did however say it was the first investigation into Cellarmaster Wines and had been impressed with its swift response to the ruling.
The association can take investigations as far as the Federal Court if companies are uncooperative. Fines are set in accordance with how companies cooperate with investigations and how swiftly they resolve any outstanding issues.
The body's chairman Chris Chapman said: "This is simply a case where a business has failed to take sufficient care in managing its Spam Act responsibilities As a result, Cellarmaster Wines has found itself in hot water, not only with the ACMA but with its customers."
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