The Australian Communications and Media Authority has slapped non-bank lender Latitude Group (ASX:LFS) with a $4 million fine.
The penalty follows an extensive investigation which revealed that the company breached national spam laws more than 2.7 million times, marking its second major run-in with the regulator in recent years.
The investigation uncovered a systemic failure in Latitude’s communication infrastructure. Between June 2023 and March 2024, the lender reportedly sent over 2.3 million marketing messages that lacked accurate contact information.
Most concerningly, 344,416 of those messages were sent without a functional unsubscribe link, effectively trapping consumers in a loop of unwanted digital correspondence.
The latest breach was ironically identified through Latitude’s own mandatory reporting requirements, which were part of an existing court-enforceable undertaking from a 2022 investigation that cost the company $1.55 million.
"Latitude is now a two-time offender, and it is disappointing that it let consumers down again," stated ACMA member Samantha Yorke.
"The spam laws have been in place for more than 20 years, and there is simply no excuse for ongoing non-compliance."
Latitude has entered into a new, more stringent three-year court-enforceable undertaking.
The company is now required to appoint an independent consultant to overhaul its compliance framework and provide regular, transparent reports to the ACMA.
At the time of reporting, Latitude Group's share price was $0.92.