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2w ago

Optus Agrees to $100 Million Penalty for Unconscionable Sales to Vulnerable Customers

Under a court-backed settlement the telco will refund affected customers, overhaul sales processes, donate $1 million to First Nations digital literacy initiatives.

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SYDNEY, AUSTRALIA - OCTOBER 05: The Optus logo and slogan are displayed outside a store on October 05, 2022 in Sydney, Australia. The identification details of 9.8 million customers of the Telecommunications operator Optus was stolen in a data breach last week, one of the largest data breaches to occur in Australia. (Photo by Brendon Thorne/Getty Images)

Overview

  • Optus admitted its sales staff engaged in unconscionable conduct and will face a A$100 million penalty after ACCC court action launched in October 2024.
  • The misconduct spanned 16 stores between August 2019 and July 2023 and targeted more than 400 vulnerable consumers, many of whom were First Nations Australians in regional and remote areas.
  • Affected customers accrued thousands of dollars in unexpected debt, experienced significant emotional distress and in some cases were pursued by debt collectors.
  • CEO Stephen Rue issued a formal apology, acknowledged the company’s failures and signed an undertaking to compensate impacted consumers and strengthen staff training.
  • As part of the settlement Optus has committed to system reforms aimed at preventing future misconduct and to donate A$1 million to First Nations digital literacy programs.