Optus Facing Court over Alleged Sales Misconduct Targeting Vulnerable Customers

The Australian Competition and Consumer Commission (ACCC) has launched legal action against Optus Mobile, alleging that the telecom company sold costly products and services to hundreds of vulnerable customers, often those with limited financial capacity or cognitive challenges. This lawsuit, filed in the Federal Court, claims that Optus’ sales practices were driven by commission-based incentives for its staff.

“This case highlights serious allegations,” stated ACCC Chair Gina Cass-Gottlieb. “Our position is that Optus pressured vulnerable individuals to purchase unnecessary and unaffordable products, causing financial and emotional harm.”

Interim CEO of Optus, Michael Venter, has acknowledged the court filing, issuing an apology to the affected customers. “We deeply regret not meeting the service standards our customers expect and deserve,” Venter said, confirming that Optus is cooperating with the ACCC investigation and committed to enhancing its support for vulnerable customers.

Alleged Sales Misconduct and Consumer Harm

The ACCC’s case details instances where approximately 429 customers—many facing cognitive disabilities, financial dependency, or language barriers—were reportedly pressured to buy high-cost phones, accessories, and plans. The alleged misconduct took place at Optus locations in Darwin, Mount Isa, and other sites across Australia.

The ACCC outlined incidents of significant financial and emotional harm among affected individuals. In one case, a person with a cognitive disability was sold multiple high-cost products and services, including a business phone contract set up with a falsified ABN. When the customer’s representative attempted to return the items, Optus initially refused, only cancelling the contracts after intervention from a financial counselor.

In addition to pressuring sales, the ACCC alleges that Optus took back some staff commissions linked to these sales but did not offer sufficient remediation for affected customers. In some cases, Optus even pursued collection of debts accrued from these sales. Furthermore, the ACCC claims Optus failed to address sales system weaknesses that enabled such incidents, despite management being aware of the issues.

Optus’ Response and Efforts to Remedy

Optus has responded by issuing refunds and waiving debts for impacted customers. Venter noted that disciplinary actions, including terminations, have been taken against employees involved in the alleged misconduct. He stated that the alleged actions were not reflective of Optus’ values and were taken seriously by the company.

Over the past three years, Optus has reportedly made significant changes to prevent future incidents, including a major review of sales practices and additional training focused on supporting vulnerable customers. The company has also implemented new sales oversight systems and plans to appoint a customer advocate to work alongside community groups and financial counselors, providing further assistance to customers in need.

The ACCC’s legal action follows a referral from the Telecommunications Industry Ombudsman (TIO), an organization that aids consumers in dispute resolution within the telecommunications sector. The ACCC seeks penalties, compensation for affected consumers, costs, and a compliance program to ensure fairer practices at Optus.