Legal action on Optus sales
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The consumer watchdog has taken Optus to court over alleged unethical sales.
The Australian Competition and Consumer Commission (ACCC) claims that Optus Mobile Pty Ltd sold telecommunications products to vulnerable customers who often lacked the financial means or understanding for these purchases, violating Australian Consumer Law.
The ACCC further alleges Optus pursued these consumers for debts on unwanted products, causing financial and emotional harm.
The alleged misconduct primarily occurred at two Optus stores in Darwin and one in Mount Isa.
The ACCC says that nearly all of the 363 cases from Darwin involved sales without coverage checks, high-pressure tactics to sell expensive devices and accessories, and credit check manipulation by staff.
Many affected customers were First Nations Australians from remote Northern Territory regions where Optus services were unavailable.
“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,” says ACCC Chair Gina Cass-Gottlieb.
In Mount Isa, 42 consumers allegedly had contracts fraudulently created by staff, with Optus then pursuing these customers for debt, despite management’s awareness of the fraudulent contracts. Similar allegations involve 24 consumers from various locations across Australia.
According to the ACCC, Optus’ practices disproportionately impacted vulnerable groups, including people with disabilities, limited financial literacy, and those from culturally and linguistically diverse backgrounds.
The ACCC investigation, initiated after a referral from the Telecommunications Industry Ombudsman, alleges Optus incentivised staff with commission-based sales goals, with management failing to address known sales issues.
The ACCC is seeking penalties, consumer redress, and compliance measures to address these alleged violations.