Optus to pay $100m fine for ‘predatory’ sales practices targeting vulnerable Australians

Josh Taylor

The federal court has fined Optus $100m over ‘predatory’ sales practices in 26 stores, including two in Darwin, that signed up vulnerable customers including First Nations and customers living with a disability to plans they could not afford.

The Australian Competition and Consumer Commission (ACCC) brought the action against Optus last year, and in a judgment on Wednesday, Justice John O’Sullivan, said Optus had engaged in “unconscionable conduct” in the practices affecting over 400 customers, and Optus senior management knew, or ought to have known about the systemic failures that allowed the conduct to occur.

He said Optus failed to act with any sense of urgency and abrogated any semblance of responsible corporate behaviour.

He said:

Of particular concern is the fact that Optus conduct predominantly affected vulnerable consumers, including people with mental disabilities, people suffering from financial hardship, those with low financial literacy and people with limited English proficiency and or learning difficulties. Again, many of the vulnerable consumers were also First Nations Australians from regional, remote and very remote communities.

In one example reported by Guardian Australia, a woman with an intellectual disability was signed up to 24 plans she could not afford.

He said the $100m penalty would have a deterrence factor for Optus and others who may think contravention would pay.

The court agreed to the orders proposed by Australian Competition and Consumer Commission and Optus of the fines and remedies suggested.

Optus chief executive, Stephen Rue, said earlier today Optus would issue a statement following the judgment.

Rue has previously apologised for the conduct – which occurred before he became chief executive – and has made changes, including taking over franchises involved in the conduct.