A claims farmer which bombarded potential clients with millions of text messages has been fined £120,000.

Allay Claims Ltd, based in Newcastle-upon-Tyne, sent more than 4 million text messages promoting PPI tax refund services between February 2023 and February 2024.

The Information Commissioner’s Office, which regulates data protection, said the messages were sent without valid consent or compliance with the rules on the ‘soft opt-in’ exemption.

The texts encouraged people whose details had previously been collected to make further claims and directed them to external landing pages. Allay claimed the messages were service updates, but the ICO found they were direct marketing communication designed to prompt action, which is in breach of the rules.

More than 46,000 complaints were submitted about these messages through the mobile reporting service and these continued even after the ICO made Allay aware of concerns about its marketing methods.

The ICO investigation showed that Allay had failed to offer a simple way for customers to refuse marketing when collecting their details. As a result, the regulator concluded that the company could not rely on the soft opt‑in exemption as it claimed, which applies only when recipients are given a clear and simple way to refuse marketing at the time their details were collected.

The ICO says that generic or bundled third‑party consent (such as ‘selected partners’ or long lists without true choice) does not meet required standards, and neither do pre‑ticked boxes and buried privacy‑policy notices constitute valid consent or a simple opt‑out.

Andy Curry, head of investigations, said: ‘Unwanted marketing messages are more than just an irritation – they’re an intrusion that can cause real distress.

‘The law here is clear: businesses must only send marketing messages to people who have freely and knowingly consented to receiving them. Relying on vague or third-party consent, or sending marketing messages under the guise of service updates, isn’t enough.’