Optus faces $100 millon fine over unlawful sales to vulnerable First Nations customers
Optus has agreed to a $100 million penalty, subject to court approval, over conduct that saw many First Nations people from remote communities sold services they did not want or need. The Australian Competition and Consumer Commission (ACCC) said many of the affected consumers were vulnerable or experiencing disadvantage, such as living with a mental disability, or English not being a first language. Many of the consumers were First Nations Australians from regional, remote and very remote parts of Australia.
The consumer watchdog sued the telco in October last year over the practices, which affected hundreds of vulnerable customers. In one instance outlined by the ACCC, a First Nations consumer who speaks English as a second language and lives in a remote community with no Optus coverage, was sold a phone. "The customer was approached by Optus staff outside an Optus store and pressured to enter," ACCC said in a statement. "They thought staff were offering them a free phone and other free products and felt pressured by staff to accept," the statement read.
Optus has admitted that its sales staff acted unconscionably when selling products and services to more than 400 consumers at 16 different stores across Australia between August 2019 and July 2023. Optus CEO Stephen Rue said the misconduct was inexcusable and unacceptable. 'I would like to sincerely apologise to all customers affected by the misconduct in some of our stores,' Mr Rue said in a statement. 'Optus failed these customers, and the company should have acted more quickly when the misconduct was first reported. "I am leading the implementation of extensive changes across the company with active responses to the issues raised well underway," Mr Rue said.
Optus has also signed an undertaking, accepted by the ACCC, that it will compensate impacted consumers and improve its internal systems, the commencement of which is subject to the Court making relevant orders. 'The conduct, which included selling inappropriate, unwanted or unaffordable mobiles and phone plans to people who are vulnerable or experiencing disadvantage is simply unacceptable,' ACCC Deputy Chair Catriona Lowe said. 'During our investigation into this case, the ACCC heard many stories of the impact of this conduct on affected consumers.' 'Many of these consumers who were vulnerable or experiencing disadvantage also experienced significant financial harm. They accrued thousands of dollars of unexpected debt and some were pursued by debt collectors, in some instances for years,' Ms Lowe said.
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