Optus apologises after being accused of selling products to vulnerable Aussies who couldnt afford them
Optus has apologised after the consumer watchdog took the telecom giant to court over allegations that vulnerable customers were pressured into buying goods and services they didnt need and couldnt afford.
Optus has apologised after the consumer watchdog took the telecom giant to court over allegations that vulnerable customers were pressured into buying goods and services they didnt need and couldnt afford.
The Australian Competition and Consumer Commission (ACCC) alleges 429 Optus customers were sold phones and accessories they didnt want or need or could afford during a two-year period up to June 2023.
ACCC chairwoman Gina Cass-Gottlieb confirmed legal action had been launched over the telcos unconscionable practices towards vulnerable customers.
Many of those impacted were First Nations people from regional and remote areas and customers living with mental disabilities or in disadvantage.
The ACCC alleges almost 500 customers were put under undue pressure to purchase a large number of products and accessories and were allegedly not informed if Optus coverage was even available in their area.
Ms Cass-Gottlieb said the ACCC will allege sales staff were motivated to sell products by a commission-based incentive system and that in some instances the telco engaged debt collectors to chase customers who didnt pay.
The majority of the ACCCs allegations against Optus involves stores in Darwin and Mount Isa in far north-west Queensland.
Optus Interim CEO Michael Venter said employees considered responsible for the misconduct involving vulnerable customers had been sacked.
The ACCC is taking Optus to the Federal Court, alleging the telco giant sold goods and services to consumers that they often did not want or need (pictured, an Optus store)
ACCC Chair Gina Cass-Gottlieb (pictured) alleged sales staff at Optus sold vulnerable customers goods and services they didnt want or need over a two-year period
We have taken disciplinary action (including terminations) against staff whom we determined were responsible for this misconduct involving vulnerable customers, he said.
Mr Venter said affected Optus customers would be given refunds, have outstanding debts waived and get to keep the devices they purchased.
He said Optus is in the process of appointing a customer advocate in a new role and had introduced new compulsory training programs.
We have cooperated with the ACCC in this investigation to date, will continue to do so and are committed to continuing to improve our processes in relation to customers experiencing vulnerability, he said.
We regret that we did not remediate more quickly in some of these cases.
Ms Cass-Gottlieb alleged Optus continued to sell products after management was made aware of the situation and failed to implement fixes.
The chairwoman said the ACCC would not only seek redress for the consumers involved, but further penalties and costs.
Optus Interim CEO Michael Venter said affected Optus customers would be given refunds, have outstanding debts waived and get to keep the devices they purchased
The ACCC stated the alleged conduct involved 363 customers from two Optus stores in Darwin, 42 consumers from the Optus Mount Isa store as well as 24 individual consumers from store locations across Australia.
Many of these consumers were experiencing vulnerability and/or disadvantage, such as living with a mental disability, diminished cognitive capacity or learning difficulties, being financially dependent or unemployed, or having limited financial and legal literacy, the ACCC said in a statement.
The ACCC alleges unconscionable conduct at Optus two licensee-operated stores in Darwin, where nearly all staff allegedly engaged in inappropriate sales conduct, encouraged by senior store management, during a two-year period to June 2023.
The ACCCs allegations include that Optus staff manipulated credit checks, oversold and overpriced accessories, and sold consumers phones and plans they could not afford at the Darwin stores.
