Australian Competition and Consumer Commission sues Optus for taking advantage of vulnerable customers

The Australian Competition and Consumer Commission is suing Optus over allegations it engaged in unconscionable conduct when selling phone products to vulnerable customers.

The ACCC is accusing Optus of selling goods and services to hundreds of consumers that they “often did not want or need”.

It is then accused of pursuing consumers for debts that resulted from the sales, many of which were First Nations customers and people who were vulnerable and/or disadvantage such as living with a mental disability, diminished cognitive capacity or learning difficulties.

Some customers were allegedly sold products despite being unemployed or having limited financial literacy.

“We allege Optus’ conduct disproportionately impacted consumers experiencing vulnerability and/or disadvantage and that these practices were incentivised by the commission-based remuneration for sales staff,” ACCC chair Gina Cass-Gottlieb said on Thursday.

“In some cases, we allege Optus took steps to protect its own financial interests by clawing back commissions to sales staff but failed to remediate affected consumers.

“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.

“We also allege that Optus’ unconscionable conduct continued after management became aware of deficiencies in its systems that were being exploited by sales staff, and despite this, failed to implement fixes.”

The case against Optus includes 429 customers who were allegedly put under “undue pressure” to purchase a large number of products and accessories who were not informed if Optus coverage was even available in their area.

Debt collectors were then allegedly engaged by Optus to pursue people who could not pay.

Ms Cass-Gottlieb said the ACCC would seek redress for the consumers involved and as well as further penalties and costs.

It alleges that staff at two Optus stores in Darwin engaged in inappropriate sales conduct under the guidance of the store’s management.

The ACCC further alleges that the stores did not carry out coverage checks despite more than 360 of their customers living in remote locations with no Optus coverage.

Communications Minister Michelle Rowland said they were “serious allegations”.

“Telcos must act in the best interest of their customers, particularly those experiencing vulnerability or disadvantage,” she said.

“Whether it be grocery prices or telecommunications selling practices, the Albanese Government will continue to work with the ACCC to ensure fair outcomes for Australian consumers.”

An Optus spokesman said the company was reviewing the ACCC claims and would respond at a later time.

The ACCC has previously prosecuted Telstra for similar conduct, fining the company $50 million for its mistreatment of more than 100 Indigenous customers between 2016 and 2018.