The ACCC (Australian Competition and Consumer Commission) claims Optus sold mobile phones and plans, particularly to vulnerable clients, who didn’t need or understand the things they were being offered. The ACCC stated that staff intentionally targeted vulnerable individuals, including those with intellectual disabilities.
We get the full story from the Australian 9news report. The ACCC accused the nation’s second-largest telecom provider of misconduct toward 429 customers, alleging it pressured them into purchasing unnecessary, unwanted, and unaffordable services.
After allegations were made public, Optus’ interim CEO Michael Venter issued an apology, expressing regret for the distress caused by the misconduct and acknowledging that Optus had not met acceptable customer service standards.
He emphasized that the behavior alleged by the ACCC was unacceptable, contradicting company values, and stated that Optus had terminated some staff involved in the misconduct.
Optus also announced it was taking steps to address the impact on affected customers by offering refunds, waiving debts, and allowing customers to keep their devices, although Venter acknowledged delays in these remediation efforts.
Don’t let telcos talk you into something you don’t need. | Image credit – PhoneArena
The ACCC highlighted that those impacted often faced challenges such as cognitive disabilities, financial dependency, and limited financial understanding, with many being Indigenous Australians from remote regions.
ACCC Chair Gina Cass-Gottlieb explained that the sales practices disproportionately targeted vulnerable groups and were motivated by commission incentives for sales staff; she also noted that Optus management allegedly failed to address systemic issues even after being made aware of them.
In one cited example, a person with an intellectual disability, unable to understand finance, was sold a costly package including a phone, a business contract, and an internet plan under a false business ID, causing emotional distress.
The ACCC reported additional cases, such as a young woman with a disability encouraged to visit an Optus store without her carer, leading to multiple purchases and eventual debt collection.
With 363 customers affected at Darwin stores, 42 at Mount Isa, and 24 at other locations, Cass-Gottlieb stated many suffered not only financially but also emotionally, feeling shame and distress over debt collection.
The ACCC is pursuing federal court orders for penalties, customer redress, and costs, while Venter emphasized Optus’ commitment to cooperating with the investigation and enhancing support for vulnerable customers, including appointing a customer advocate and strengthening partnerships with community groups.
Now that I come to think of it, I’ve been pressured so many times by greedy telcos to get a new (more expensive) plan, that I think my homeland’s regulators also should take somebody to court.
