AI
Saturday, June 21, 2025 2:53:15 PM
Optus to face $100 million penalty for unconscionable conduct selling products to vulnerable customers
"Hackers behind Microsoft outage most likely Russian-backed group aiming to ‘drive division’ in the west"
Corporate practice can be more dangerous than hackers. Remember the WFC:
* Many lenders providing housing loans did not closely assess borrowers’ abilities to make loan repayments.
https://www.rba.gov.au/education/resources/explainers/the-global-financial-crisis.html
By business reporter Stephanie Chalmers
Wed 18 Jun
Wednesday 18 June
Telco Optus has admitted it failed customers and should have reacted faster to the misconduct. (AAP: Bianca De Marchi)
In short:
The consumer watchdog and Optus have agreed the telco should pay a$100
million penalty, after it admitted to inappropriate sales practices and misconduct.
More than 400 customers, many vulnerable or experiencing disadvantage, were sold
phones or signed up to contracts they did not want or need, or couldn't afford or use.
What's next?
The Federal Court will need to approve the penalty and orders on customer compensation and the way sales staff are paid.
Optus has admitted to engaging in unconscionable conduct and has agreed to a $100 million penalty for selling customers phones and contracts they did not want or need.
In some cases, people were sold plans even though they lived in areas where Optus reception was unavailable.
The consumer watchdog sued the telco in October over the practices, which affected hundreds of vulnerable customers.
The Australian Competition and Consumer Commission (ACCC) said many of the affected consumers were vulnerable or experiencing disadvantage, including living with disability, being unemployed or having English as a second language.
Many of the consumers were First Nations Australians from regional, remote and very remote parts of Australia, the ACCC said.
In one instance a First Nations consumer, who spoke English as a second language, was approached by Optus staff outside a store and pressured to enter.
They were then entered into multiple phone plans and contracts for products including "high-end phones" the ACCC said, for a total minimum cost of $3,808 over 24 months.
The person did not have Optus coverage at their home address and were later pursued by a debt collector.
Optus has admitted that its sales staff acted unconscionably when selling products and services to more than 400 consumers at 16 different stores across Australia between August 2019 and July 2023.
https://www.abc.net.au/news/2025-06-18/accc-optus-admit-unconscionable-conduct-100m-penalty/105430714
"Hackers behind Microsoft outage most likely Russian-backed group aiming to ‘drive division’ in the west"
Corporate practice can be more dangerous than hackers. Remember the WFC:
* Many lenders providing housing loans did not closely assess borrowers’ abilities to make loan repayments.
https://www.rba.gov.au/education/resources/explainers/the-global-financial-crisis.html
By business reporter Stephanie Chalmers
Wed 18 Jun
Wednesday 18 June
Telco Optus has admitted it failed customers and should have reacted faster to the misconduct. (AAP: Bianca De Marchi)
In short:
The consumer watchdog and Optus have agreed the telco should pay a$100
million penalty, after it admitted to inappropriate sales practices and misconduct.
More than 400 customers, many vulnerable or experiencing disadvantage, were sold
phones or signed up to contracts they did not want or need, or couldn't afford or use.
What's next?
The Federal Court will need to approve the penalty and orders on customer compensation and the way sales staff are paid.
Optus has admitted to engaging in unconscionable conduct and has agreed to a $100 million penalty for selling customers phones and contracts they did not want or need.
In some cases, people were sold plans even though they lived in areas where Optus reception was unavailable.
The consumer watchdog sued the telco in October over the practices, which affected hundreds of vulnerable customers.
The Australian Competition and Consumer Commission (ACCC) said many of the affected consumers were vulnerable or experiencing disadvantage, including living with disability, being unemployed or having English as a second language.
Many of the consumers were First Nations Australians from regional, remote and very remote parts of Australia, the ACCC said.
In one instance a First Nations consumer, who spoke English as a second language, was approached by Optus staff outside a store and pressured to enter.
They were then entered into multiple phone plans and contracts for products including "high-end phones" the ACCC said, for a total minimum cost of $3,808 over 24 months.
The person did not have Optus coverage at their home address and were later pursued by a debt collector.
Optus has admitted that its sales staff acted unconscionably when selling products and services to more than 400 consumers at 16 different stores across Australia between August 2019 and July 2023.
https://www.abc.net.au/news/2025-06-18/accc-optus-admit-unconscionable-conduct-100m-penalty/105430714
It was Plato who said, “He, O men, is the wisest, who like Socrates, knows that his wisdom is in truth worth nothing”
Discover What Traders Are Watching
Explore small cap ideas before they hit the headlines.
