Kogan Pays $310K For Breaching Spam Laws

Kogan Australia has agreed to a court-enforceable undertaking, and paid a $310,800 infringement notice, for breaches of Australian spam laws.
An Australian Communications and Media Authority (ACMA) investigation found Kogan sent more than 42 million marketing emails to consumers from which they could not easily unsubscribe, the authority said in a press release.
Instead, Kogan required consumers to take additional steps setting a password and logging into a Kogan account. ACMA found Kogan’s conduct breached the Spam Act, which requires commercial electronic messages to contain a functional unsubscribe facility.
“Kogan’s breaches have affected millions of consumers. The ACMA received complaints from a number of recipients of Kogan’s email expressing their frustration and concern with Kogan’s practices,” ACMA Chair Nerida O’Loughlin said in a statement.
“Businesses must comply with the unsubscribe requirements in the spam rules. This investigation makes clear that businesses can’t force customers to set a password and login to unsubscribe from receiving commercial messages.”
O’Loughlin said ACMA had sent Kogan multiple compliance alerts before commencing this investigation.
These notifications, she said, are designed to alert businesses of potential non-compliance with the Spam Act. “ACMA alerts put businesses on notice—address consumer concerns or we will investigate you under the law, as we have done here,” she said.
O’Loughlin acknowledge that Kogan fully cooperated with the ACMA in its investigation and took actions to update their unsubscribe facilities prior to its completion.
ACMA has accepted a three-year court-enforceable undertaking from Kogan, which requires it appoint an independent consultant to review its systems, processes and procedures, and to implement any recommendations from the review.
The undertaking covers Kogan Australia Pty Ltd and is applicable to all the company’s trading names, including the Kogan and Dick Smith brands.
The undertaking also requires Kogan to train staff responsible for sending marketing messages and to regularly report back to ACMA on actions taken in relation to consumer complaints.
“This substantial infringement notice and a comprehensive three-year court-enforceable undertaking sends a message to Kogan and other businesses that the ACMA will take strong action for breaches of the spam rules,” O’Loughlin said.
Over the past 18 months, businesses have paid over $2.1 million for ACMA-issued infringement notices for breaking spam and telemarketing laws. ACMA has also accepted nine court-enforceable undertakings and issued ten formal warnings to businesses.
ACMA said enforcement action for breaches of spam laws can include formal warnings, infringement notices, action in the federal court and accepting court-enforceable undertakings. Repeat corporate offenders can face court-imposed penalties of up to $1.11 million a day.
The news comes after Kogan Australia was ordered to pay a penalty of $350,000 for making false or misleading representations about a tax time sales promotion, in breach of Australian Consumer Law.
It also follows Kogan being urged by concerned Hindus to immediately withdraw all six versions of a beach-towel, sold at its subsidiary Matt Blatt, carrying the image of Hindu deity Lord Ganesh.
The towel was deemed highly inappropriate.
Featured image source: Kogan.com
Latest News

REVEALED: Australia’s Greatest-Ever Ad!!!
You voted and now B&T can reveal Australia's greatest EVER ad! Yes, Ali Baba Kebabs can feel rightly aggrieved.

The Royals & Ryvalmedia Win Big In B&T’s Top-Performing Agencies For November
Which agency chiefs will be collecting their Christmas bonuses? Discover the truth with this 'who's hot' barometer.

George P. Johnson Announces Leadership Changes
Changes at the top at George P. Johnson today. The middle and the bottom given the order to stand down.

Monday TV Ratings: The 1% Club Scores Seven A Win
Game shows continuing to rate well with TV viewers. Yet, that's not to say we need Andrew O'Keefe back anytime soon.

Free TV Comes Out Swinging Over Sports Rights After Amazon Snares The Cricket
Industry body says free TV sports rights are under threat. Meanwhile Wallabies declare they've all but given up.

Westpac Shows Optus How To Apologise
Westpac delivers on its crisis communication. Also see Westpac board trying to save their collective arses.

Triple J Announces Hottest 100 2023 Dates
This year's Hottest 100 deets announced. With B&T predicting big things for Nollsy's KFC ad.

A Professional Cheese Sculptor Stars For Wacky Ads For US University
Hating the job right now? These uni ads could (A) inspire you to new things or (B) give you a laugh, albeit a brief one.

Don’t Be THAT Perfectionist….Enter B&T’s 30 Under 30 Awards, Presented By Vevo, Now!
Work with people who endlessly say "things were better in my day"? Sounds like you're a real contender for 30 Under 30.

We Are Warriors & R/GA To Produce City Of Sydney’s Calling Country & New Year’s Eve Fireworks
Social Indigenous Enterprise We Are Warriors (WAW), supported by creative innovation studio R/GA Australia, has been selected to produce the City of Sydney’s New Year’s Eve Calling Country live performance as part of the 9pm firework show. Lead image L-R: WAW co-founders Ben Miles & Nooky. The performance will feature a special Welcome to Country […]

Data Is King. So How Can Marketers Survive Privacy Reforms?
There's a fine line between proper use of customer data and a $50K fine from the ACCC. Save your cash with this read.

Chery Launches New Tiggo 7 Pro In Australian Market With Creative Campaign Via Chello
Chinese EVs continuing to flood into the Aussie market. Clearly no reciprocal agreement with our wine and barley.

Isuzu UTE Extends A-Leagues Partnership Through To 2026
Isuzu UTE extends its A-Leagues partnership. Also desperately hoping the fans don't behave like dickheads.

Seven Network Unveils New Advanced Advertising Division
Seven unveils its new advanced advertising division. No sign of official scarlet red team tracksuits, however.

“Give An F About the Flags”: Surf Life Saving Australia Launches Summer Campaign Via Banter
Every Australian should know to swim between the flags. That and Bradman's average and most of the words to Khe Sanh.

Toyota & HCLTech To Appear On Aussie Cricketers’ Shirts This Summer
You can almost hear leather on willow with this news. Unless someone's being attacked with a cricket bat in your office.

G Squared Bolsters Paid Media & Search With Key Hires
G Squared announces key hires in its paid search team. Although we appreciate not everyone's a fan of paid search.

“Extinction Greenwashing”: Supermarkets Target Of ACCC Complaint Over Misleading Salmon Claims
Yet again claims about Tasmanian salmon catch watchdog's ire, as chickens declare we're ridgy-didge.

Droga5 London Launches First Campaign For ADV New Motorcycle
Unsure if you're in the throes of a possible midlife crisis? Watch this motorbike ad and learn the horrible truth.

Mediahub Expands Into New Zealand Market
Mediahub unveils its New Zealand plans. And it only took the locals four minutes to mention the rugby.

It Takes A Village: Havas Drives Off With Avis Budget Group’s Media & Earned PR
There are few greater joys in life than flogging the shit out of a rental car, is there?

Amazon Prime Secures Rights To Next Cricket World Cup
Judging by the acrimony, sledging & hatred of last month's Cricket World Cup, the next one's shaping up to be a ripper.

Limited Tickets Still Available For First Ever Industry Pantomime
With just over 24 hours to go until the world premiere of Addy Lala and the Mood Tea Thieves, limited tickets are still available for the pantomime, which will run for one night only at the Everest Theatre in Sydney’s Seymour Centre on December 5th. All in the industry are encouraged to come along to […]

Palin Communications joins GlobalCom PR Network
Specialist Australian health PR agency, Palin Communications, has joined GlobalCom PR Network with a view to delivering meaningful, consistent, impactful, global health campaigns across a range of countries and regions.

Axe-Wielding Eric Andre Stars In Opera GX Campaign, Via Waste Creatives
Irreverent campaign for Opera GX, the browser for gamers, sees actor and comedian Eric Andre confronting people using “boring” browsers

Make it your way at Highpoint Via Cyclone Creative Agency
Highpoint is inviting Melbournians to embrace what makes them different, through their ‘Make it Your Way’ campaign via Cyclone Creative agency.

2045: A New Melbourne-Based Creative Agency Founded by Tim Evans and Nick Auditore
2045, a Melbourne-based creative agency founded by Tim Evans and Nick Auditore has just launched. The agency takes its name from the year futurist Ray Kurzweil predicted organic and artificial intelligence would converge. Lead Image: 2045 Team Evans was formerly a Partner and Executive Strategy Director at DT (now AKQA), before co-founding B.B.E in 2015. […]

Pengu Dances Their Way Through New Film by electriclime°
Production house electriclime° have linked up with Riot Games to create a new film to celebrate the launch of Teamfight Tactics Mobile (“TFT”) in Asia Pacific.

National Breast Cancer Foundation Announced as Charity Partner For NYE Sydney
The National Breast Cancer Foundation has been announced as the Charity Partner for Sydney New Year’s Eve. The Australian not-for-profit organisation is represented by the pink ribbon and raises money to fund world-class research towards its vision of zero deaths from breast cancer. Research that saves lives through a better understanding of how to prevent […]

Sunday TV Ratings: Brits Dominate With Annika, Joanna Lumley And David Attenborough Making Top 10
Sunday night strangely dominated by UK-made content. That said, Piers not getting a heap of love over at Sky.

Emporium Unveils Unique Christmas Campaign: “Every Tradition Starts Somewhere”
This holiday season, Emporium Melbourne has announced its festive creative campaign that celebrates and encourages the Melbourne community to embrace their personal ‘untraditional traditions’ – the unique traditions that make Christmas truly special for them, and their family. The campaign’s tagline, “Every tradition starts somewhere”, reflects Emporium’s commitment to embracing, inspiring and applauding diverse traditions […]

Stop Being A Water Waster! Sydney Schoolboy Urges Everyone To Save Water, Via It’s Friday
Planning a staff dunking booth this Christmas? Not too late to switch to 10-pin bowling with this water save campaign.

Reddit Updates Conversation Placement Ads Formats
Reddit has announced updates to its new ads placement with Carousel Ads and Product Ads. These new units, placed in the heart of Reddit discussions, provide an even more dynamic and compelling way for advertisers to scale to relevant audiences, deliver deeper value to users, and drive stronger, full-funnel performance among the hundreds of thousands […]

Full Throttle Into 2024: Drive.com.au Announces 12 New Products In 2024 Upfronts
Automotive Network Drive has announced its 2024 upfronts, its biggest in more than a decade, with a suite of more than 12 new products that underpin its vision to be the number one automotive network in Australia. Now in its 27th year and with a monthly audience of 2.45 million, Drive is leveraging its reputation […]

Journalist Tegan George Suing Network 10 After Being Left With “Trauma” From Bushfire Reporting
It's been a rocky road for many people & agencies in 2023; however, it's been all sunshine & rainbows for 10's lawyers.

As Big Spenders Flee, X Pivots To SMBs To Fill Ad Dollar Deficit
Elon's halo continues to slip. Joining Albo's, Harry's, Meghan's and Optus' similar downward trajectory.