Pizza Hut Australia has incurred a hefty fine of over $2.5 million for inundating customers with more than 10 million marketing messages within a span of four months, a significant portion of which lacked unsubscribe options.
The Australian Communications and Media Authority (ACMA) revealed that The Pizza Pan Group Pty Ltd, operating as Pizza Hut Australia, dispatched 5,941,109 texts and emails from January to May 2023 to individuals who either hadn’t consented or had withdrawn their consent for marketing communications. Furthermore, Pizza Hut also sent 4,364,971 marketing messages during this period without providing recipients with the option to unsubscribe.
ACMA member Samantha Yorke expressed dismay over these breaches, emphasizing the frustration caused to affected individuals. She stressed that consumers have the right not to receive unsolicited marketing messages and underscored the obligation of businesses to uphold consumer rights, especially well-established entities like Pizza Hut.
Prior to the investigation, ACMA had issued 15 compliance alerts to Pizza Hut following 39 consumer complaints. In response to the investigation, Pizza Hut admitted to various shortcomings, including sending marketing emails:
After receiving unsubscribe requests from customers
To individuals who had only opted in for SMS marketing
Without a functional unsubscribe mechanism in the email
In light of these violations, a spokesperson for Pizza Hut Australia issued an apology, attributing the issue to a system error and pledging cooperation with ACMA and an independent consultant to rectify marketing communication practices.
In addition to the fine, Pizza Hut Australia is subject to a three-year court-enforceable undertaking, requiring the appointment of an independent consultant to review compliance and implement necessary improvements. Regular reporting to ACMA is also mandated.
ACMA’s efforts to combat unsolicited spam emphasize the seriousness of compliance with direct marketing laws, with severe penalties awaiting violators. Pizza Hut’s recent data breach affecting 200,000 customers underscores the imperative for companies to bolster cybersecurity measures to safeguard consumer data and privacy.