Agency Tongue pays out over spam texts for Coca Cola

“Ideas agency” Tongue, which recently rebranded from Ikon spin-off New Dialogue, has been forced to pay $22,000 to the communications regulator and make a legally enforceable undertaking about its future conduct after arranging for spam mobile messages to be sent on behalf of client Coca Cola.  

According to the Australian Communications and Media Authority, Coca Cola South Pacific has been issued with a formal warning over the breach, Vodafone Hutchinson Australia has paid $110,000 and Big Mobile, which provided the software platform to send the texts, will have to pay 25c compensation to each consumer who was spammed with messages that had no means of unsubscribing or contact information about the sender.

ACMA said the outcome came “after investigating alleged breaches of the Spam Act 2003 arising from a marketing campaign that promoted certain Coca-Cola products through SMS””

The campaign took place last year, with New Dialogue aranging for 100,000 SMSs to be sent on behalf of Coca Cola from a database it obtained from elsewhere. According to the settlement, the agency will have to put staff through spam training and give ACMA three-monthly updates on how that is going. It will also have to prove it has made reasonable efforts that when a database of mobile numbers is provided by a third party the users have opted in to receive commercial messages.

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