Optus faces $100 million fine over unlawful sales to vulnerable people

The Advertiser

12 hours ago

Optus will ask a court for a $100 million penalty after admitting to breaching Australian Consumer Law over sales to vulnerable people.
More than 400 Optus customers were sold products they did not want or need, could not use or could not afford and many were pursued by debt collectors and accrued massive debts.
Many of the sales were to vulnerable people, including First Nations, people living with disability and people with limited financial and English literacy.
The ACCC and Optus will jointly ask the Federal Court to impose the penalty after reaching an agreement, announced on June 18.
Optus admitted to engaging in unconscionable conduct after the consumer watchdog launched court action in October 2024.
The announcement said Optus admitted that its sales staff "acted unconscionably" when selling phones and contracts between 2019 and 2023.
Optus CEO Stephen Rue said the misconduct was inexcusable and unacceptable and apologised to affected customers.
"Optus failed these customers, and the company should have acted more quickly when the misconduct was first reported," Mr Rue said.
He said he was leading the implementation of extensive changes across the company.
"There is much more to do as we work to regain our customers' trust and improve support and protections for them, especially for those who are vulnerable."
READ MORE: Optus regrets 'unacceptable' conduct alleged by ACCC
Optus has signed an undertaking to compensate the affected consumers and improve its internal systems. The timing of this will be subject to court orders.
ACCC deputy chair Catriona Lowe said the telco's behaviour was "simply unacceptable".
"During our investigation into this case, the ACCC heard many stories of the impact of this conduct on affected consumers."
"Many of these 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.
Ms Lowe thanked advocates, financial counsellors and carers who helped the affected customers.
Communication consumer organisation Australian Communications Consumer Action Network (ACCAN) said it welcomed the news that Optus could pay one of the largest consumer law penalties.
ACCAN CEO Carol Bennett said Optus had "spectacularly surpassed" the high bar of unconscionable conduct in its actions.
"Phone and internet products are not a luxury - they are fundamental and essential services. To manipulate, abuse and exert control over people reliant on the product or service being sold represents a cruel and uncaring approach," Ms Bennett said.
"It beggars' belief that Optus or any telco could feel this behaviour is acceptable."
"We thank the ACCC for acting on behalf of those who were exploited by this appalling behaviour."
Optus will ask a court for a $100 million penalty after admitting to breaching Australian Consumer Law over sales to vulnerable people.
More than 400 Optus customers were sold products they did not want or need, could not use or could not afford and many were pursued by debt collectors and accrued massive debts.
Many of the sales were to vulnerable people, including First Nations, people living with disability and people with limited financial and English literacy.
The ACCC and Optus will jointly ask the Federal Court to impose the penalty after reaching an agreement, announced on June 18.
Optus admitted to engaging in unconscionable conduct after the consumer watchdog launched court action in October 2024.
The announcement said Optus admitted that its sales staff "acted unconscionably" when selling phones and contracts between 2019 and 2023.
Optus CEO Stephen Rue said the misconduct was inexcusable and unacceptable and apologised to affected customers.
"Optus failed these customers, and the company should have acted more quickly when the misconduct was first reported," Mr Rue said.
He said he was leading the implementation of extensive changes across the company.
"There is much more to do as we work to regain our customers' trust and improve support and protections for them, especially for those who are vulnerable."
READ MORE: Optus regrets 'unacceptable' conduct alleged by ACCC
Optus has signed an undertaking to compensate the affected consumers and improve its internal systems. The timing of this will be subject to court orders.
ACCC deputy chair Catriona Lowe said the telco's behaviour was "simply unacceptable".
"During our investigation into this case, the ACCC heard many stories of the impact of this conduct on affected consumers."
"Many of these 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.
Ms Lowe thanked advocates, financial counsellors and carers who helped the affected customers.
Communication consumer organisation Australian Communications Consumer Action Network (ACCAN) said it welcomed the news that Optus could pay one of the largest consumer law penalties.
ACCAN CEO Carol Bennett said Optus had "spectacularly surpassed" the high bar of unconscionable conduct in its actions.
"Phone and internet products are not a luxury - they are fundamental and essential services. To manipulate, abuse and exert control over people reliant on the product or service being sold represents a cruel and uncaring approach," Ms Bennett said.
"It beggars' belief that Optus or any telco could feel this behaviour is acceptable."
"We thank the ACCC for acting on behalf of those who were exploited by this appalling behaviour."
Optus will ask a court for a $100 million penalty after admitting to breaching Australian Consumer Law over sales to vulnerable people.
More than 400 Optus customers were sold products they did not want or need, could not use or could not afford and many were pursued by debt collectors and accrued massive debts.
Many of the sales were to vulnerable people, including First Nations, people living with disability and people with limited financial and English literacy.
The ACCC and Optus will jointly ask the Federal Court to impose the penalty after reaching an agreement, announced on June 18.
Optus admitted to engaging in unconscionable conduct after the consumer watchdog launched court action in October 2024.
The announcement said Optus admitted that its sales staff "acted unconscionably" when selling phones and contracts between 2019 and 2023.
Optus CEO Stephen Rue said the misconduct was inexcusable and unacceptable and apologised to affected customers.
"Optus failed these customers, and the company should have acted more quickly when the misconduct was first reported," Mr Rue said.
He said he was leading the implementation of extensive changes across the company.
"There is much more to do as we work to regain our customers' trust and improve support and protections for them, especially for those who are vulnerable."
READ MORE: Optus regrets 'unacceptable' conduct alleged by ACCC
Optus has signed an undertaking to compensate the affected consumers and improve its internal systems. The timing of this will be subject to court orders.
ACCC deputy chair Catriona Lowe said the telco's behaviour was "simply unacceptable".
"During our investigation into this case, the ACCC heard many stories of the impact of this conduct on affected consumers."
"Many of these 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.
Ms Lowe thanked advocates, financial counsellors and carers who helped the affected customers.
Communication consumer organisation Australian Communications Consumer Action Network (ACCAN) said it welcomed the news that Optus could pay one of the largest consumer law penalties.
ACCAN CEO Carol Bennett said Optus had "spectacularly surpassed" the high bar of unconscionable conduct in its actions.
"Phone and internet products are not a luxury - they are fundamental and essential services. To manipulate, abuse and exert control over people reliant on the product or service being sold represents a cruel and uncaring approach," Ms Bennett said.
"It beggars' belief that Optus or any telco could feel this behaviour is acceptable."
"We thank the ACCC for acting on behalf of those who were exploited by this appalling behaviour."
Optus will ask a court for a $100 million penalty after admitting to breaching Australian Consumer Law over sales to vulnerable people.
More than 400 Optus customers were sold products they did not want or need, could not use or could not afford and many were pursued by debt collectors and accrued massive debts.
Many of the sales were to vulnerable people, including First Nations, people living with disability and people with limited financial and English literacy.
The ACCC and Optus will jointly ask the Federal Court to impose the penalty after reaching an agreement, announced on June 18.
Optus admitted to engaging in unconscionable conduct after the consumer watchdog launched court action in October 2024.
The announcement said Optus admitted that its sales staff "acted unconscionably" when selling phones and contracts between 2019 and 2023.
Optus CEO Stephen Rue said the misconduct was inexcusable and unacceptable and apologised to affected customers.
"Optus failed these customers, and the company should have acted more quickly when the misconduct was first reported," Mr Rue said.
He said he was leading the implementation of extensive changes across the company.
"There is much more to do as we work to regain our customers' trust and improve support and protections for them, especially for those who are vulnerable."
READ MORE: Optus regrets 'unacceptable' conduct alleged by ACCC
Optus has signed an undertaking to compensate the affected consumers and improve its internal systems. The timing of this will be subject to court orders.
ACCC deputy chair Catriona Lowe said the telco's behaviour was "simply unacceptable".
"During our investigation into this case, the ACCC heard many stories of the impact of this conduct on affected consumers."
"Many of these 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.
Ms Lowe thanked advocates, financial counsellors and carers who helped the affected customers.
Communication consumer organisation Australian Communications Consumer Action Network (ACCAN) said it welcomed the news that Optus could pay one of the largest consumer law penalties.
ACCAN CEO Carol Bennett said Optus had "spectacularly surpassed" the high bar of unconscionable conduct in its actions.
"Phone and internet products are not a luxury - they are fundamental and essential services. To manipulate, abuse and exert control over people reliant on the product or service being sold represents a cruel and uncaring approach," Ms Bennett said.
"It beggars' belief that Optus or any telco could feel this behaviour is acceptable."
"We thank the ACCC for acting on behalf of those who were exploited by this appalling behaviour."