PUBLISHED BY ORDER OF THE FEDERAL COURT OF AUSTRALIA
Corrective Notice:
Following proceedings instituted by the ACCC, the Federal Court has declared, by consent, that Optus Mobile Pty Ltd (Optus) contravened the Australian Consumer Law (ACL) by engaging in unconscionable conduct in relation to many consumers who were vulnerable or experiencing disadvantage, including First Nations Australians from regional, remote and very remote parts of Australia.
The unconscionable conduct included instances where Optus sales staff:
- subjected vulnerable consumers to undue pressure or influence to purchase products or services,
- failed to explain terms and conditions of contracts,
- sold consumers goods and services they did not want or could not use, including not having regard to whether the consumer had Optus coverage where they lived,
- sold consumers goods and services Optus knew or ought reasonably to have known they could not afford, and
- made false or misleading representations to four consumers that certain products were free when, in fact, that was not the case.
In some cases, despite knowing about the sales misconduct and that the conduct was subject to ongoing internal and external investigations, Optus pursued debt collection activities against vulnerable consumers, including by referring and selling their debts to third party debt collection agencies. Optus also referred or sold debts in circumstances where Optus (including its senior management) knew, or ought to have known, that contracts had been, or may have been, created by Optus staff without the knowledge of consumers.
The conduct took place in circumstances in which Optus’s senior management became increasingly aware, or ought to have become increasingly aware, that Optus sales staff were engaging in the inappropriate sales conduct.
Optus recognises that the nature and impact of the conduct on consumers was extremely serious. Optus has taken steps to remediate affected consumers and has in place a remediation program for consumers who have been impacted by similar improper sales practices. Further information about that remediation program is available on our Sales Misconduct Update page.
Optus has also taken steps, and is committing to further steps, to reduce the risk of similar conduct occurring in the future. The 87B Undertaking is available at the ACCC website.
The Federal Court has ordered that Optus:
- pay to the Commonwealth of Australia a pecuniary penalty in the amount of $100 million
- publish this corrective notice
- pay the ACCC’s costs of and incidental to the proceeding, fixed in the amount of $1.5 million.