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· Posted on
May 20, 2024

Pizza Hut shows it has absolutely no chill after being fined $2.5 million for sending too much spam

Pizza Hut Australia has been fined $2.5 million by the Australian Communications and Media Authority (ACMA) for sending nearly 6 million texts and emails.

What's the key learning?

  • Email campaigns are quite cheaper than the regular ads and in fact, it only costs a few cents per email sent.
  • Aside from Pizza Hut, other companies like Ticketek, OPSM, Kmart, Doordash and Commbank also received telemarketing penalties from ACMA in the past months.
  • Not only did Pizza Hut's spammy email campaigns defeated its purpose, it has been made it worse for the company costing them unnecessary penalties & violations.

👉 Background: Pizza Hut is the global pizza franchise that first expanded into Australia in the 1970’s. Since June 2023, it’s been owned by a US franchiser operator called the Flynn Restaurant Group.

👉 What happened: Now, Pizza Hut Australia has been fined $2.5 million by the Australian Communications and Media Authority (ACMA) for sending nearly 6 million texts and emails over four months to customers who had unsubscribed or not consented.

👉 What else: It also sent out another 4 million marketing messages without an option to unsubscribe. But it's not their first rodeo - before this investigation, Pizza Hut Australia had already received 15 warnings from ACMA regarding compliance.

What's the key learning?

💡While the cost of sending emails and texts is pretty cheap, the cost of breaching these laws is becoming very costly.

💡Because companies are often tempted to send out major message blasts, ACMA has been actively cracking down on the practice over the past 18 months and has issued more than $15 million in spam and telemarketing penalties.

💡This fine not only hurts Pizza Hut Australia's reputation but could even cause Pizza Hut customers to think twice about sharing their details with Pizza Hut in the future.

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