Optus is being taken to court for selling disadvantaged customers products they didn’t want, then pursing many for debts resulting from the purchase.
Australian Competition and Consumer Commission Chair Gina Cass-Gottlieb said the ACCC had commenced proceedings in the Federal Court alleging Optus engaged in “unconscionable conduct in contravention of the Australian Consumer Law” when selling telecommunications goods and services to hundreds of consumers.
Ms Cass-Gottlieb said in many cases the customers did not want or need the products sold to them and Optus then pursued some consumers for debts resulting from these sales.
She said many of these consumers were experiencing vulnerability and/or disadvantage, such as living with a mental disability, diminished cognitive capacity or learning difficulties, being financially dependent or unemployed, or having limited financial and legal literacy.
“Many of the impacted consumers were First Nations Australians from regional and remote areas or people from culturally and linguistically diverse backgrounds.
“We allege Optus’ conduct disproportionately impacted consumers experiencing vulnerability and/or disadvantage, and that these practices were incentivised by the commission-based remuneration for sales staff.”
Ms Cass-Gottlieb said it would alleged in some cases Optus took steps to protect their own financial interests by clawing back commissions to sales staff, but failed to remediate affected consumers.
“This case concerns allegations of very serious conduct, as our case is that Optus sold goods to consumers experiencing vulnerability which they did not need, did not want and could not afford.”
“We also allege that Optus’ unconscionable conduct continued after management became aware of deficiencies in its systems that were being exploited by sales staff, and despite this, failed to implement fixes,” Ms Cass Gottlieb said.
She said the ACCC’s case involved dealings with about 429 consumers where they engaged in inappropriate sales conduct and/or pursuing consumers for debts, including when it knew contracts were created fraudulently.
“The conduct included Optus allegedly putting undue pressure on some of these consumers to purchase a large number of products, including expensive phones and accessories, and not undertaking coverage checks to inform the consumer whether they would have Optus coverage where they lived.”
Ms Cass-Gottlieb said the alleged conduct involved 363 consumers from two Optus Darwin stores, 42 consumers from the Optus Mount Isa store and 24 individual consumers from store locations across Australia.
Optus Interim CEO Michael Venter said he apologised to all customers affected by the misconduct and for the distress caused.
“We deeply regret that in these instances we failed to meet the customer service standards that our customers deserve and should expect,” Mr Venter said.
“The misconduct alleged by the ACCC is unacceptable, and completely out of step with our company values and we accept that we need to protect all customers, including those experiencing vulnerability, from this type of behaviour.
“We are remediating affected customers including by providing refunds, waiving outstanding debts and enabling them to keep devices. We regret that we did not remediate more quickly in some of these cases.”
Read the full Statement of Claim.
