Optus was hit with an AUD100 million ($66 million) penalty for misleading sales practices over a four-year period, delivering a fresh blow to Australia’s second-largest operator after technical errors during a network upgrade caused a failure in its emergency call system, which led to multiple deaths.
A federal court ordered the operator to pay the amount for engaging in “unconscionable conduct” when selling mobile phones and contracts impacting more than 400 customers in a case brought by the Australian Competition and Consumer Commission (ACCC).
Justice Patrick O’Sullivan approved a plea agreement between Optus and the ACCC.
In addition to the fine, Optus committed to a five-year court-enforceable undertaking, requiring it to compensate impacted consumers and improve internal systems.
ACCC highlighted many of the consumers impacted had mental disabilities, diminished cognitive capacity, were unemployed or had limited financial literacy. Many were First Nations Australians from regional and remote parts of the country.
O’Sullivan said the consequences of Optus’s conduct were “profound”, adding: “Numerous individuals experienced severe financial harm, emotional distress and social shame”.
Optus committed to paying AUD1 million to support digital literacy initiatives for First Nations Australians.
