Optus agrees to $100m penalty over sales practices

Optus sign
Optus faces a $100m fine for "unconscionable conduct” | Photo: Cogdog blog (Wikimedia)

Optus is set to pay a $100 million fine for selling products to consumers who did not want, nor could afford, them.

Australian Competition and Consumer Commission (ACCC) Deputy Chair Catriona Lowe said the telecommunications provider had admitted to engaging in “unconscionable conduct” when selling goods and services to hundreds of consumers.

Ms Lowe said in many instances the consumers did not want or need, could not use or could not afford what they were sold, and in some cases consumers were pursued for debts resulting from these sales.

She said many of the affected consumers were vulnerable or experiencing disadvantage, such as living with a mental disability, diminished cognitive capacity or learning difficulties, being financially dependent or unemployed, having limited financial literacy or English not being a first language.

“Many of the consumers were First Nations Australians from regional, remote and very remote parts of Australia.”

Ms Lowe said as part of an agreement announced today (June 18), the ACCC and Optus would jointly ask the Federal Court to impose a total penalty of $100 million on Optus for breaching the Australian Consumer Law.

“It is a matter for the Court to decide whether the penalty is appropriate and to make other orders,” she said.

Ms Lowe said Optus had admitted that its sales staff acted unconscionably when selling phones and contracts to over 400 consumers at 16 different stores across Australia between August 2019 and July 2023.

“The conduct, which included selling inappropriate, unwanted or unaffordable mobiles and phone plans to people who are vulnerable or experiencing disadvantage is simply unacceptable.

“During our investigation into this case, the ACCC heard many stories of the impact of this conduct on affected consumers.”

She said many of the consumers who were vulnerable or experiencing disadvantage also experienced significant financial harm.

“They accrued thousands of dollars of unexpected debt and some were pursued by debt collectors, in some instances for years,” Ms Lowe said.