Record out of court fine for failing to follow email marketing laws

The company responsible for managing Gray’s auctioneers online business, Grays Online, recently came under the scrutiny of the communications regulator, ACMA, for breaches of the Spam laws, resulting in a fine to Grays of $165,000 – the largest ever imposed out of court by the regulator.

Grays mistake was a simple one – they considered that a particular email sent as part of a direct marketing campaign was not ‘commercial’ within the Spam Act. It was.

Teeth are not normally the domain of lawyers – we leave that to the dentists.

However, when the new privacy laws come into effect on 14 March 2014, the Australian privacy regulator will grow some sharp new molars in the form of new powers against relevant businesses if they don’t have their privacy house in order.

Under existing privacy laws, businesses not complying with their privacy obligations got little more than a sharp and public slap on the wrist. Potentially embarrassing yes, a significant hole in a business’s pocket, no.