Grays, the operator of Australian e-commerce platform, GraysOnline, has been fined $165,000 by the Australia’s communications regulator after sending hundreds of thousands of emails that breached the Spam Act.
An Australian Communications and Media Authority (ACMA) investigation found a decision by Grays that an email campaign introducing its GraysEscape website was not promotional, was incorrect.
As a result of the decision, Grays sent messages without an opt-out facility and to some people who had previously withdrawn their consent to receiving marketing messages.
The fine is reportedly the largest ever handed out by the ACMA since the Spam Act was passed almost 10 years ago.
The Act requires that all marketing emails are sent with the consent of the recipient, and include an option for recipients to opt-out of receiving further marketing messages.
‘This case demonstrates the domino effect one wrong decision can have,’ said ACMA deputy chairman, Richard Bean.
“Businesses take a huge risk if they decide an email doesn’t need to comply with the Spam Act,” Bean said.
“This conduct involved a conscious decision by an experienced e-marketer. The consequences of getting it wrong can be severe—from potential penalties such as this, to damaging your reputation.”