(qlmbusinessnews.com Mon, 15th Jan, 2024) London, UK —
“Data Breach Cuisine: HelloFresh Hit With £140K Penalty for Spamming Customers”
HelloFresh, the popular food delivery company, is under scrutiny and has been fined £140,000 for inundating customers with millions of spam emails and texts. The penalty comes as a result of a 2022 investigation conducted by the Information Commissioner's Office (ICO).
During a seven-month spamming campaign, HelloFresh reportedly sent out a staggering 79 million emails and one million texts. The ICO, responsible for data protection in the UK, deemed this action a “clear breach of trust.” The investigation was initiated after 14 direct complaints and an additional 8,729 complaints submitted through the spam message reporting service (7726).
The regulatory body discovered that HelloFresh persisted in contacting individuals who had explicitly requested to stop receiving communications. Additionally, customers were allegedly not adequately informed that their data could be used for marketing purposes for up to 24 months after canceling their subscriptions.
Andy Curry, head of investigations at the ICO, commented on the matter, stating, “This marked a clear breach of trust of the public by HelloFresh.” He emphasized that customers were not provided with clear information on what they were opting into, making the barrage of unwanted marketing texts a significant violation.
In response to the fine, HelloFresh asserted its commitment to customer-centric practices and highlighted its serious approach to data protection obligations. The company claimed to have collaborated with the ICO, carefully considered their feedback, and made adjustments to its SMS and email policy.
Despite the ICO citing 14 direct complaints, HelloFresh contended that the regulator received only three. The company, founded in 2011, operates in a competitive market alongside rivals such as Gusto and the Mindful Chef.
Teresa Wickham, a food retail expert, noted that the recipe box market is highly competitive, with thin profit margins and high overhead costs. While the ICO fine is expected to impact HelloFresh's brand and bottom line, Wickham expressed sympathy for the company, acknowledging the challenges posed by the current data-driven landscape.
The ICO emphasized that the fine serves as a clear and decisive measure, demonstrating the consequences for flouting laws designed to protect customers' rights to control their data usage.
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