The Commonwealth Bank has been fined $3.55 million by the Australian Communications and Media Authority (ACMA) for breaching spam laws. The bank has agreed to an independent assessment of its e-marketing procedures
The Commonwealth Bank has been punished with the biggest penalties the communications watchdog has ever issued for breaking spam rules. The Australian Communications and Media Authority fined the bank $3.55 million for mailing its clients more than 65 million spam emails.
The bank sent 61 million emails that, according to an inquiry by the regulator, improperly forced consumers to log in if they wanted to unsubscribe from receiving the communications. 5000 emails were sent to persons who had already requested to unsubscribe, while another four million were sent without an unsubscribe link.
The fine is the highest monetary punishment the government has ever issued for breaking spam regulations. According to the bank, revisions to the terms and conditions for electronic banking in November 2021 resulted in the spam law violations.
Nerida O’Loughlin, head of the ACMA, stated that businesses must make sure that customers have the choice to unsubscribe from messages they do not wish to receive.
“The scale and duration of the breaches by the CBA are alarming, especially when the ACMA gave it early warnings it might have some issues and the steps it took were ineffective,” she said. “Marketing invasions of consumers’ privacy frustrate consumers, especially when there is no way, or it is challenging, to unsubscribe.”
Executive for marketing and corporate affairs at Commonwealth Bank Monique Macleod claimed that the business had resolved the concerns that were the subject of the fine and that they had been self-reported to the appropriate authorities.
The flaws that were the focus of ACMA’s inquiry have been resolved, and we’ve reinforced our systems, procedures, and controls to enable continued compliance, she added.
We apologize to all of the consumers who were affected by these errors, which shouldn’t have happened. As part of a three-year court-enforceable agreement, the Commonwealth Bank has consented to an independent assessment of its e-marketing procedures.
Additionally, the bank will have to provide consistent compliance reports to the communications watchdog. Companies are prohibited from sending messages to clients after they have unsubscribed under the present spam regulations, and marketing materials must provide mechanisms for recipients to choose not to receive additional communications.
Over $11 million in fines have been imposed on businesses in the last 18 months for breaking spam regulations. Large, well-known companies that ought to know better than to violate the spam regulations are nonetheless being seen, according to Ms. O’Loughlin.
We’ll be keeping a careful eye on the Commonwealth Bank’s compliance with the law and its promises to evaluate its procedures. We won’t be reluctant to take additional action if we discover future non-compliance.
The Commonwealth Bank has been punished with the biggest penalties the communications watchdog has ever issued for breaking spam rules. The Australian Communications and Media Authority fined the bank $3.55 million for mailing its clients more than 65 million spam emails.
According to the bank, revisions to the terms and conditions for electronic banking in November 2021 resulted in the spam law violations. The bank has agreed to an independent assessment of its e-marketing procedures and will have to provide consistent compliance reports to the communications watchdog. Over $11 million in fines have been imposed on businesses in the last 18 months for breaking spam regulations.
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