CommSec fined $55K for spamming

Commonwealth Bank subsidiary CommSec has been slapped on the wrist by the Australian Media and Communications Authority (ACMA) after complaints that it had been sending unwanted messages to customers.

ACMA said that CommSec had satisfactorily undertaken actions to rectify the alleged problems. The securities subsidiary was fined $55,000.

ACMA commenced investigations following complaints from customers and identified that there were no options to "unsubscribe" from email campaigns conducted by CommSec in January, February and March of last year. The investment and securities subsidiary also allegedly continued to send its customers electronic messages even after they had withdrawn consent, which is in direct violation of the Spam Act.

"ACMA expects that Australian businesses take note of this outcome," ACMA chairman Chris Chapman said in a statement.

"Under the Spam Act, every person has the right to unsubscribe from receiving commercial electronic messages and to have that request acted on effectively and quickly. The failure to act on a request can result in significant penalties if a business is found to have breached the Act," said Chapman.

The Spam Act also requires that all commercial electronic messages allow users to unsubscribe.

"CommSec has undertaken to initiate stringent reviews of its systems and processes as a result of this investigation, and has demonstrated a commitment to making the internal changes necessary for ongoing compliance with the Spam Act," said Chapman.

As part of an implementation plan approved by ACMA, CommSec will be appointing an independent consultant to assess the investment company. The plan would also include quarterly audits on its email campaigns for 12 months and the introduction of an annual training program.