Consumer finance company Latitude Financial has copped fines totalling $1.55 million, after sending over three million spam messages to its customers.
The Australian Communications and Media Authority found the lender mischaracterised emails and texts advertising its products as “information only”, a breach of the Spam Act of 2003.
These messages were sent between June 2021 and March 2022, promoting its credit cards, mobile apps, and reward programs, without the option to unsubscribe.
This follows a $3.7 million fine issued by ACMA to Sportsbet for similar offences.
“Companies cannot promote their products and services to customers under the guise of simply providing them with factual information,” ACMA chairwoman Nerida O’Loughlin.
“Customers must be able to withdraw their consent and stop receiving commercial messages. That choice must be actioned within five days.
“Latitude failed on both these counts. It also did not make changes to its practices even after we alerted it several times that it may have compliance problems.”
A spokesman for Latitude Financial said the company “acknowledges that the fine and enforceable undertaking reflect the volume and seriousness of the breach.
“Latitude has agreed to all directions from the ACMA, including the appointment of an independent consultant to review current procedures, policies, training and systems, as well as additional training for staff.
“Latitude has improved its processes around electronic communications ahead of the independent review.”
