Virgin Blue will overhaul its email marketing systems and pay a $110,000 charge after consumers complained they were unable to unsubscribe from the airline's mailing list.
The Australian Communications and Media Authority said the airline would "engage an independent third party to thoroughly assess its email marketing processes and to implement any recommended changes.
"It will also provide training to relevant employees, establish a complaints handling policy, and audit 10 per cent of its email marketing campaigns monthly for a year," ACMA said in a statement.
"Virgin Blue has also made payment of $110,000 as part of the undertaking."
ACMA said the investigation was prompted by complaints alleging Virgin Blue "continued to send commercial emails despite recipients' multiple attempts to unsubscribe from its mailing list".
"During the investigation, Virgin Blue acknowledged that it had experienced problems with its email marketing systems, which led to some previously unsubscribed consumers continuing to receive emails," ACMA said.
ACMA chairman Chris Chapman said the Spam Act required companies to cease sending commercial electronic messaged five working days after an unsubscribe request is made".
Virgin Blue was down 0.5 cents at 44 cents at 10am.