Optus has apologized after the consumer watchdog took the telecoms giant to court over allegations that “vulnerable” customers were pressured into buying goods and services they did not need and could not afford.
The Australian Competition and Consumer Commission (ACCC) alleges that 429 Optus customers were sold phones and accessories they did not “want or need” or could not afford over a two-year period to June 2023.
ACCC chair Gina Cass-Gottlieb confirmed legal action had been taken over the telco’s “unconscionable practices” towards vulnerable customers.
Many of those affected were First Nations people from regional and remote areas and clients living with mental disabilities or disadvantage.
The ACCC alleges that almost 500 customers were put under “undue pressure” to purchase a large number of products and accessories and were allegedly not informed whether Optus cover was available in their area.
Cass-Gottlieb said the ACCC will allege that sales staff were motivated to sell products through a commission-based incentive system and that in some cases the telco hired debt collectors to pursue non-paying customers.
Most of the ACCC’s allegations against Optus involve stores in Darwin and Mount Isa in far north-west Queensland.
Optus acting chief executive Michael Venter said employees found responsible for misconduct involving vulnerable customers had been dismissed.
The ACCC is taking Optus to the Federal Court, alleging the telecommunications giant sold goods and services to consumers they “often neither wanted nor needed” (pictured, an Optus store).
ACCC chair Gina Cass-Gottlieb (pictured) alleged that Optus sales staff sold goods and services to “vulnerable customers” that they did not “want or need” over a two-year period.
“We have taken disciplinary action (including dismissals) against staff who we determined were responsible for this misconduct involving vulnerable customers,” he said.
Mr. VenterHelping affected Optus customers would receive refunds, have outstanding debts forgiven and be able to keep the devices they purchased.
He said Optus is in the process of appointing a customer advocate to a new role and has introduced new mandatory training programmes.
“We have co-operated with the ACCC on this investigation to date, we will continue to do so and we are committed to continuing to improve our processes in relation to customers who experience vulnerability,” he said.
“We regret not having remedied some of these cases more quickly.”
Cass-Gottlieb alleged that Optus continued to sell products after management learned of the situation and “failed to implement solutions.”
The chairperson said the ACCC would not only seek compensation for the consumers involved, but also additional penalties and costs.
Optus interim chief executive Michael Venter said affected Optus customers would receive refunds, have outstanding debts forgiven and would be able to keep the devices they purchased.
The ACCC stated that the alleged conduct involved 363 customers at two Optus stores in Darwin, 42 consumers at the Optus Mount Isa store and 24 individual consumers at stores across Australia.
“Many of these consumers were experiencing vulnerability and/or disadvantage, such as living with a mental disability, impaired cognitive ability or learning difficulties, being financially dependent or unemployed, or having limited financial and legal knowledge,” the ACCC said in a statement.
‘The ACCC alleges unconscionable conduct at two stores operated by Optus licensees in Darwin, where almost all staff allegedly engaged in inappropriate sales conduct, encouraged by the store’s senior management, over a two-year period to June 2023.
‘The ACCC’s allegations include that Optus staff manipulated credit checks, oversold and undervalued accessories and sold consumers phones and plans they could not afford in Darwin stores.’