Optus has agreed to pay a $100 million penalty, pending federal court approval, for engaging in unconscionable conduct by selling phones and contracts to vulnerable customers who couldn't afford them, didn't want them, or lacked network coverage. The misconduct, which affected over 400 consumers at 16 stores across Australia between 2019 and 2023, involved pressuring individuals, including those with mental disabilities, diminished cognitive capacity, or language barriers, into contracts they couldn't manage, leading to significant distress and debt collection.
Optus agrees to $100m penalty for selling phones to customers who couldn’t afford them or were out of range
OptusBusinessAustralia
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TL;DR: Key points with love ❤️Optus has agreed to pay a $100 million penalty, pending federal court approval, for engaging in unconscionable conduct by selling phones and contracts to vulnerable customers who couldn't afford them, didn't want them, or lacked network coverage. The misconduct, which affected over 400 consumers at 16 stores across Australia between 2019 and 2023, involved pressuring individuals, including those with mental disabilities, diminished cognitive capacity, or language barriers, into contracts they couldn't manage, leading to significant distress and debt collection.
Trending- 1 2019-2023: Unconscionable conduct by Optus occurred at 16 stores.
- 2 Recently (before June 18, 2025): Optus agrees to pay $100 million penalty.
- 3 Ongoing: Federal court judge approval pending.
- $100 million penalty for Optus (largest ever for telco sector if approved)
- Significant emotional distress and fear for affected customers
- Debts referred to debt collectors
- Optus signed undertaking to compensate impacted consumers and improve internal systems
- Internal disciplinary action taken, sales staff lost jobs
- Calls for stronger, enforceable regulation in the telco sector
What: Optus agreed to pay a $100 million penalty for unconscionable conduct in selling phones and contracts to vulnerable customers.
When: The agreement was reached recently (article published June 18, 2025). The misconduct occurred between 2019 and 2023.
Where: Australia, specifically at 16 Optus stores across the country.
Why: Sales commissions at Optus stores drove 'predatory practices,' which continued unchecked due to a lack of compliance controls and corporate arrogance, failing to prioritize vulnerable customers.
How: Optus staff pressured vulnerable consumers (e.g., those with mental disabilities, diminished cognitive capacity, unemployed, language barriers) into contracts for high-end phones and multiple plans they couldn't afford or use due to lack of coverage. Debts were then referred to debt collectors.