Optus to pay $100 million fine over sales to vulnerable customers
“Many of the affected consumers were vulnerable or experiencing disadvantage, such as living with a mental disability, diminished cognitive capacity or learning difficulties, being financially dependent or unemployed, having limited financial literacy or English not being a first language,” the ACCC said.
Optus has conceded its sales staff put undue pressure on consumers to buy a large number of products, including expensive phones and accessories that they did not want or need, could not use or could not afford; and also failed to explain relevant terms and conditions.
Many of the affected customers lived in regional, remote and very remote parts of Australia, and the telco has admitted its staff did not have regard to whether consumers had Optus coverage where they lived.
It said its staff also sold products and services that Optus knew or should have known the consumers could not afford; and that employees misled these consumers to believe that goods were free or included as part of a bundle at no additional cost.
ACCC deputy chair Catriona Lowe criticised the telco’s conduct.Credit: Alex Ellinghausen
ACCC deputy chair Catriona Lowe said: “The conduct, which included selling inappropriate, unwanted or unaffordable mobiles and phone plans to people who are vulnerable or experiencing disadvantage is simply unacceptable.”
In one instance, Optus staff were alleged to have approached a First Nations person who was outside a store and pressured to enter, despite not wanting or needing a new phone and living in a remote community with no coverage. The customer, who spoke English as a second language, claimed they thought staff were offering them a free phone and products, and felt pressured to accept.
Over the next two days, they entered into contracts for phones and accessories with a minimum cost of $4300, with false information provided into their credit check. Their debt was then referred to a debt collector.
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In another case, a customer with an intellectual disability relying on the pension, who went to an Optus store with a support worker intending to buy a $20 prepaid recharge, was instead pressured into three contracts for a phone and smart watch costing more than $8000 over three years.
In 2021, Optus staff at its Westfield Marion branch in Adelaide sold a man, who was homeless and had several disabilities – including deafness, being a mute, and partial finger and hand amputations – mobile handsets and accessories he was unable to afford.
The customer, who reportedly relied on the disability pension, communicated via sign language, with the ACCC alleging staff did not explain to him the terms of the products he was signing up for.
An Optus internal investigation also found the store manager of its Mt Isa branch had falsified identification documents and used the identities of First Nations customers to create 82 contracts for services without their knowledge. After Optus was notified, it sold outstanding debts from the contracts to third-party collectors.
Optus chief executive Stephen Rue reiterated the company’s apology over the incidents, calling the misconduct inexcusable and unacceptable.
“Optus failed these customers, and the company should have acted more quickly when the misconduct was first reported,” he said.
Rue said Optus was making “extensive changes” which were already under way. “However, there is much more to do as we work to regain our customers’ trust and improve support and protections for them, especially for those who are vulnerable.”
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