Home National Optus Facing $100 Million Penalty, Pending Court Approval, for Misleading Sales Practices Targeting Vulnerable Customers

Optus Facing $100 Million Penalty, Pending Court Approval, for Misleading Sales Practices Targeting Vulnerable Customers

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Australia’s consumer regulator, the Australian Competition and Consumer Commission (ACCC), has announced a significant penalty of $100 million against Optus, a major telecommunications provider. The fine, pending approval from the Federal Court, is a result of Optus’ acknowledgment of misconduct by its sales personnel.

Between August 2019 and July 2023, Optus staff were found to have acted unconscionably by selling mobile phones and contracts to over 400 customers across 16 different stores in Australia. These transactions often targeted vulnerable individuals, including those with mental disabilities or reduced cognitive abilities, as well as First Nations Australians residing in regional and remote areas.

The ACCC’s enforcement action aims to address these unethical sales practices, which placed undue pressure on consumers, leading them to purchase products they did not require or truly want.

Optus has been reached for comments regarding this ruling, and further updates are anticipated as the situation develops.

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