As Optus Sport closes, subscription refunds are on their way

The Guardian

5 days ago

Optus Sport customers who paid an annual fee for the service will receive a refund when it shuts down next month – but only by cheque in some cases.
Optus announced on 30 June its sport streaming service would close on 1 August, after it transferred the rights to broadcast the Premier League, FA Cup and other competitions to Nine Entertainment and Stan.
In an email to customers on Monday – seen by Guardian Australia – Optus said eligible customers would need to provide their postal and email address by 29 August to get a refund on the unused portion of their $199 annual subscription.
'We can only issue your refund via a cheque,' the email said.
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A spokesperson for Optus said a 'subset group' of customers had been told their refund would be issued via cheque.
'This is not the standard practise and is occurring where electronic banking is unavailable due to our billing and subscription management system constraints or where the credit card has been cancelled, expired or failed,' they said.
In 2023 the government announced that cheques would be phased out in a 'gradual, coordinated and inclusive' transition to purely digital payment services, after a 90% decline in the use of cheques over 10 years.
One former Optus customer commented on X: 'Cheque refund @OptusSport ... what sort of medieval transaction is this. Havnt been to a ye old bank for years.'
In a February 2024 submission to the government's consultation process on the transition away from cheques, Optus noted there were 'limited circumstances' where cheques were still used.
'Cheques remain beneficial where a large volume of payments is required
to be made, particularly where such payments are unable to be provided via the original payment method (for example, for former customers or where details are no longer current) …
'In addition, cheques remain a secure way of providing payments without needing to contact customers / former customers and requesting updated financial details. This is important in an environment where Government and organisations are taking steps to reduce and disrupt scam activity.'
In November 2024 the government confirmed that cheques could no longer be issued after 28 June 2028, and would not be accepted after 30 September 2029.
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A spokesperson for the Australian Competition and Consumer Commission said consumer law did not specify what method should be used for refunds.
'However, businesses that use cheques to provide customers with refunds should be planning for how they will transition to other payment methods in line with the government's transition plan for the phasing out of cheques,' the spokesperson said.
'Businesses should also consider ways to ensure that their customers are actually able to receive any refunds, particularly consumers in remote areas with less access to banking facilities.'
The digital policy director at the Consumer Policy Research Centre, Chandni Gupta, said digital products had a clear path between product and payment – if money came in one way, it should be returned the same way.
'Placing the onus on individuals to go through extra steps to claim a refund that is rightly theirs creates an unnecessary barrier for someone who has already lost time and money,' Gupta said.
'It's unfair for customers to have to jump through hoops to access their refund, but sadly it's not illegal.'
The director of legal practice at the Consumer Action Law Centre, Stephen Nowicki, said he generally did not see a problem with refunding money via cheque, and it might even be preferable to reduce the potential for scams.
'But if somebody prefers to get an online refund then I would hope Optus Sport gives them that option,' Nowicki said.