ACCC Sues Optus Over Sales to Vulnerable Customers

Australia's second-largest telecommunications company is facing federal court proceedings over allegations of systematically targeting vulnerable customers through high-pressure sales tactics and aggressive debt collection practices.

The Australian Competition and Consumer Commission announced it was pursuing Optus Mobile, alleging the company engaged in unconscionable conduct that harmed more than 429 consumers, many experiencing poverty, mental health challenges, or limited financial literacy.

The targeted customers included people with intellectual disabilities, Indigenous Australians living in remote communities where Optus had no coverage, unemployed individuals, and others in difficult financial circumstances. The ACCC argues that commission-based compensation for sales staff incentivized aggressive tactics that exploited these vulnerable populations.

The alleged misconduct spanned multiple Optus locations. At two Northern Territory stores, sales staff systematically subjected 363 customers to inappropriate sales pressure over two years ending mid-2023. In regional Queensland, a store manager allegedly created fraudulent contracts affecting 42 customers, many of whom subsequently faced debt collection actions despite having never authorized the purchases. Another 24 customers at various locations were subjected to undue pressure to buy multiple products, in some cases under false claims that items were complimentary.

One documented case involved a woman with an intellectual disability who was befriended by staff, encouraged to return alone, and then sold multiple products she did not understand or need—after which the company pursued her through debt collection.

Indigenous customers in remote areas were sold network services despite never being informed that coverage would not reach their locations, rendering the services completely unusable.

The conduct raises questions about corporate governance and accountability. ACCC officials argue that senior management became aware of these problematic practices but failed to implement corrective measures. While Optus subsequently clawed back some commissions from offending staff members, the company did not compensate affected customers until these allegations surfaced and legal action loomed.

Optus has now acknowledged the seriousness of the allegations. The interim chief executive issued a statement recognizing that the company failed to meet its obligations to vulnerable customers and announcing a program of refunds and debt forgiveness for those harmed.

The case arrives amid heightened scrutiny of telecommunications companies' consumer practices. A similar enforcement action against rival Telstra resulted in a $50 million penalty in 2021 for comparable misconduct involving vulnerable customer targeting.

The timing carries particular significance: much of the conduct occurred while Optus was preparing its inaugural reconciliation action plan, released in May 2023, which publicly committed the company to cultural respect and integrity across its operations.