Groupon (GRPN) Hit with Formal Warning in Australia Over 'Spammy' Emails

March 14, 2013 12:27 PM EDT
Groupon (Nasdaq: GRPN) is pressured on the session Thursday following a formal warning issued to the daily-deals company over its emails.

According to reports, the Australian Communications and Media Authority (ACMA) said Groupon's method on unsubscribing from its email list was "unclear" and that the company failed to move on the requests within the five-day time allotment under Australia's Spam Act.

The ACMA said it was receiving complaints from customers who though they had completely unsubscribed, but were only removed from certain newsletters, like daily or weekly. The ACMA said, "In the ACMA’s view, it was reasonable for individuals to expect they would be unsubscribed from all newsletters unless they were advised otherwise."

Groupon is said to have improved the method to unsubscribe in the country with the implementation of an account management system. The system more easily lets users decide which email they'd like to receive.

Shares of Groupon are down 3.2 percent.


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