Legal Action Against Optus for Unlawfully Selling Unwanted Products to Vulnerable Consumers
Many disadvantaged customers, including Indigenous Australians from remote and regional areas, as well as those living with disabilities or in financial disadvantage, are being sold telecommunication products by Optus. The Australian Competition and Consumer Commission (ACCC) is suing Optus for allegedly engaging in “unconscionable conduct” by targeting these vulnerable individuals. The ACCC has taken legal action against Optus for selling goods and services to hundreds of consumers who did not want or need them, often resulting in debts that consumers could not afford to pay.
The ACCC alleges that Optus exploited vulnerable consumers who faced cognitive capacity issues, mental disabilities, financial dependency, unemployment, or lack of financial and legal literacy. The company’s conduct is said to have disproportionately affected these vulnerable groups. The sales staff at Optus were reportedly incentivized by commission-based remuneration, leading to inappropriate sales practices.
The ACCC’s investigation revealed instances of unconscionable conduct at Optus-licensed stores, including manipulation of credit checks, overselling of accessories, and selling products to consumers who could not afford them. Consumers in regional or remote communities faced coverage issues, preventing them from working. The consequences of these unethical practices have been severe, resulting in significant financial harm, emotional distress, and fear among affected consumers.
Despite the serious allegations, Optus has announced remedial measures to address the situation. The company will provide refunds, waive outstanding debts, and allow affected customers to keep their devices. Optus has also implemented new sales systems, mandatory training, and IT improvements to prevent future misconduct. A customer advocacy program has been introduced to better support vulnerable customers, along with investments in a dedicated care team and a new vulnerable customer policy.
