Tab fined $4 million for spamming customers

Tabcorp has been penalised over $4 million for sending thousands of spam messages to customers of its VIP program, without giving them the ability to opt out.

An Australian Communications and Media Authority (ACMA) investigation found that Tab sent 2,598 messages on SMS and Whatsapp to its VIP customers over a three-month period in 2024 without providing an option to unsubscribe. An additional 3,148 messages did not contain adequate sender information, while eleven texts were sent without consent.

Under the Spam Act 2003, businesses must have consent before sending marketing messages, which must also contain an unsubscribe option and sender information.

Tab has copped a $4m fine from ACMA.

The ACMA’s authority member Samantha Yorke said this is the first time it has found spam breaches in a gambling VIP program.

“These programs often involve personalised messages offering incentives such as bonus bets, deposit matching, rebates and offers of tickets to sporting and other events,” Yorke said in the ruling.

“The gambling industry needs to understand that spam laws apply to all direct marketing—whether it’s generic campaigns or personalised messages.

“VIPs should not be confused with gambling ‘high-rollers’. These types of gambling VIP programs can involve customers who are not well off and are experiencing significant losses.

“It is utterly unacceptable that TAB did not have adequate spam compliance systems in place.”

TAB has also entered into a three-year court-enforceable undertaking, which includes an independent review of its direct marketing systems, quarterly audits of its VIP direct marketing, staff training, and regular reporting to the ACMA.

Over the last few years, the ACMA has been cracking down on spam law compliance, issuing over $16.9 million in fines for spam breaches in the last 18 months.

Big businesses fined for breaching the spam act in recent years include Uber, Ticketek, Outdoor SupaCentre, Kmart, Commonwealth Bank, Mycar, Doordash, Pizza Hut, and Sportsbet.

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