ACCC suing Optus after carrier allegedly ‘exploited’ vulnerable consumers

Australia’s consumer rights watchdog is suing Optus, alleging the carrier “exploited” vulnerable customers.

Australia’s consumer rights watchdog is suing Optus, alleging the scandal-ridden carrier “exploited” hundreds of vulnerable customers.

The Australian Competition and Consumer Commission (ACCC) announced the Federal Court action against Optus on Thursday, alleging the telco’s sales teams forced products upon disadvantaged prospects, including people with mental disabilities and those in financially precarious positions.

ACCC chair Gina Cass-Gottlieb said Optus’s alleged sales tactics were “unconscionable.”

“Many of these consumers experiencing vulnerability or disadvantage were living with a disability, were facing learning difficulties or unemployed, or financially dependent,” she told reporters.

“Additionally, many of them were First Nations Australians living in regional or remote communities where the phones were unable to have coverage and unable to work.”

Ms Cass-Gottlieb said the ACCC was alleging “sales staff manipulated credit checks in order to oversell phones and plans to vulnerable consumers” and even “pursued debt-collection activities against these vulnerable consumers.”

ACCC chair Gina Cass-Gottlieb says the alleged Optus sales tactics are ‘unconscionable’. Picture: NewsWire / Christian Gilles

“The impacted consumers suffered financial harm of thousands of dollars but, in addition, emotional harm -- the fear, shame and distress of the debts and of being pursued by debt collectors,” she said.

She said the ACCC also alleged the dodgy dealings were driven by commissions and did not stop even after management learned of the conduct.

“This conduct is unacceptable to the ACCC,” Ms Cass-Gottlieb said.

“It is unacceptable to the Australian community. We are seeking penalties and consumer remediation.

“The protection of consumers experiencing vulnerability or disadvantage is an enduring priority of the ACCC.”

Optus is facing claims it “exploited” vulnerable customers by allegedly forcing unsuitable products upon them. Photo by: NCA Newswire /Gaye Gerard

The alleged conduct affected 363 customers from Optus stores in Darwin, 42 customers from its Mount Isa store and 24 individual customers from stores across the country.

Optus’s interim chief executive Michael Venter said the company had been informed of the ACCC’s move and apologised to “customers affected by this misconduct”.

“We sincerely apologise to all customers affected by this misconduct and for the distress caused,” Mr Venter said.

“We deeply regret that in these instances we failed to meet the customer service standards that our customers deserve and should expect. 

“The misconduct alleged by the ACCC is unacceptable, and completely out of step with our company values and we accept that we need to protect all customers, including those experiencing vulnerability, from this type of behaviour.”

He said Optus was “remediating affected customers including by providing refunds, waiving outstanding debts and enabling them to keep devices.” 

“We regret that we did not remediate more quickly in some of these cases,” Mr Venter said.

Optus has had a run of scandals in recent years, with a major data breach in 2022 and a widespread service outage last year that brought hundreds of thousands of businesses to a halt and left millions of customers unable to call Triple 0.

In a statement to NewsWire, Communications Minister Michelle Rowland said the allegations were “very serious” and that “telcos must act in the best interest of their customers, particularly those experiencing vulnerability or disadvantage.”

“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,” she said.

Originally published as ACCC suing Optus after carrier allegedly ‘exploited’ vulnerable consumers