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Uber's Costly Mistake: AUS$412,500 Fine for Spam Emails in Australia

Uber fined AUS$412,500 in Australia for spam emails, breaching anti-spam laws, and lacking an unsubscribe option.

 


There are many services offered by Uber Technologies, Inc., commonly known as Uber, which is a multinational company that offers a wide array of services, like ride-hailing, food delivery, and freight transportation, to its customers. 

Founded in California, the company is located in around 70 countries around the world, providing its services in over 10,500 cities around the globe, from its headquarters in San Francisco. On a global scale, Uber brings together more than 6 million active drivers and couriers daily, which gives the app an extremely high user base, with more than 131 million active users every month. 

The platform facilitates an estimated 25 million trips on a typical day, which is a record for the platform. The United States' largest ride-sharing company, Uber, has played a significant role in enabling a remarkable 42 billion trips since its establishment in 2010. Uber has also made a significant contribution to enabling a large share economy through opportunities such as the sharing economy. 

AFP reported that Uber was fined Aus$412,500 ($260,000) by Australian Communications and Media Authority (ACMA) for sending more than two million emails to customers in violation of anti-spam laws, as the company had violated anti-spam laws by sending over two million emails.  

There was a bulk email campaign distributed in January that marketed a new service that delivered alcohol to people at their homes. Furthermore, the company did not provide the option for customers to unsubscribe from the mailing list. Further, over 500,000 emails were sent to recipients who previously indicated that they did not want to receive marketing emails from us in the future. 

There are explicit laws in the Australian laws that prohibit companies from sending marketing emails without receiving the express consent of the recipient. Additionally, these laws require that the email recipients be provided with a clear option to unsubscribe from these mailings.

It has been noted that Nerida O'Loughlin, the chair of the ACMA, described Uber's actions as an 'avoidable error' and that the importance of respecting the preferences of customers cannot be overstated, given that customers are becoming increasingly frustrated when their requests are not met. 

As a response to these violations, Uber has apologized for sending these marketing emails, admitting that they had made an error in sending these emails. According to their apology, Uber acknowledged that they had made an error in this regard as well. 

According to ACMA reports, over the past 18 months, the total amount of penalties and fines paid by Australian businesses for violating spam and telemarketing laws has been over Aus$11 million. Accordingly, Uber has been fined an amount of Australian dollars 412,500 (equivalent to US dollars 260,000) in response to these violations. 
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