Woolworths faces investigation
The Information Regulator has received two related complaints about Woolworths preventing customers from unsubscribing from spam emails after joining its MyDifference loyalty programme.
A spokesperson for the watchdog told MyBroadband that it had received complaints about the issue in response to a request for comment.
Provided the complaints were properly formulated, that meant Woolworths’ direct marketing practices would be investigated.
Woolworths shut down its WRewards and MySchool loyalty programmes on 1 July, replacing them with MyDifference.
While the loyalty programmes are functionally identical, with MyDifference only adding more features, there was one catch — marketing communications.
Early adopters of the MyDifference programme wrote to MyBroadband to complain that they received frequent marketing emails which they could not unsubscribe from.
Upon contacting Woolworths’ customer support, the retailer told clients that MyDifference members could not unsubscribe from the programme’s emails.
“Please note that when you join MyDifference, you will receive all communications related to the programme,” a customer support representative said.
“If you choose to be removed from MyDifference, you will no longer receive the instant discounts and other benefits associated with it.”
In other words, the choice was either to continue receiving direct marketing and other emails from Woolworths or to cancel your MyDifference profile and forgo the discounts it offers.
One customer who wrote to MyBroadband said they received near-daily MyDifference promotional emails a few months ago after signing up for the new programme.
The frequency then became about four or five emails per month. However, since May, MyDifference appears to have sent only one promotional email per month.
Interestingly, Woolworths included an unsubscribe link in its 29 April MyDifference newsletter. After that, the frequency of MyDifference emails reduced.
MyBroadband contacted the Information Regulator for comment, which provided feedback to questions about how companies must seek consent from customers within the context of a loyalty programme.
Information Regulator answers questions about Woolworths MyDifference
The Information Regulator confirmed that a company must obtain customers’ consent before sending them further communications when they register for a loyalty programme.
“Any responsible party must obtain consent from a data subject to process their personal information,” a spokesperson for the regulator said.
In the instance of direct marketing, the Information Regulator said certain exceptions applied, but with restrictions.
“A responsible party may only process the personal information of a data subject who is their customer,” it stated.
“But only if they have obtained the contact details of the data subject in the context of the sale of a product or service for direct marketing of the responsible party’s own similar products or services.”
The Information Regulator also confirmed that a company must give the customer the ability to opt out with every communication.
It also confirmed that sending the customer an email about a new feature in their shopping or loyalty app would be considered direct marketing.
“They must provide a clear opt-out option in every single message,” a spokesperson for the regulator said.
“The amended POPIA regulations indicate that a responsible party must avail an opt-out process that is free of charge, with no unnecessary formalities, and takes effect almost immediately.”
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