Tabcorp, one of the largest gambling corporations in Australia, was recently hit with a $4 million fine. The company broke spam laws associated with its VIP programs. The Australian Communications and Media Authority (ACMA) has slapped the company with a record penalty. This marks the first time they have found violations in Tabcorp’s VIP messaging policies. The fine, more than double the maximum stipulated in the law, has already been paid by the company, along with a three-year court undertaking to avoid future violations.
The ACMA’s follow up investigation found that Tabcorp sent 3,148 messages with no identification of the sender. On top of that, they blasted out 11 different text messages to people without their consent. This breach was a big deal because it called into question the company’s ability to play by the rules of spam.
Samantha Yorke, a senior representative from the ACMA, said she was displeased with Tabcorp’s behavior and actions. She stated, “It is utterly unacceptable that TAB did not have adequate spam compliance systems in place.” Yorke added that protecting consumers’ choices when it comes to receiving unsolicited communications is fundamental. “When people make choices to unsubscribe from a service, they must be able to do so easily and their decisions must be respected by companies,” she added.
In reaction to the Auditor General’s discoveries, Tabcorp has pledged to take a number of actions to address its operations. The company will conduct its own pre-review of the marketing material. It will prepare a quarterly audit of its VIP marketing program and train staff to raise compliance awareness. Furthermore, Tabcorp committed to engaging regularly with the ACMA during this period.
“Tabcorp assisted the ACMA throughout the investigation and will continue to work closely with the regulator to ensure ongoing improved compliance,” a spokesperson from Tabcorp stated.
The ACMA has recently been closely scrutinizing companies for breaches of spam legislation. In its first 18 months, it issued over $16.9 million in default fines against towns, counties, sanitary districts, and even school boards. The authority said it was happy with Tabcorp’s efforts to fix the breaches and come into line in the future.
