Optus has been ordered to pay a $100 million fine by the Federal Court of Australia after admitting to claims made by the Australian Competition and Consumer Commission (ACCC) that it had taken advantage of vulnerable customers.
This fine is double the size of the one issued to Telstra back in 2021, when Australia's competition watchdog took action against Australia's biggest carrier over similar conduct. It's one of the largest fines in the history of Australian Consumer Law, though well short of the current record holder.
As previously reported, Optus' conduct included pressuring vulnerable customers, manipulating credit checks and signing up customers without their knowledge or consent.
ACCC deputy chair Catriona Lowe welcomed the outcome, calling Optus' conduct "truly appalling."
Lowe added that a company of Optus’s size should have had better systems and controls in place to identify and take action against improper conduct.
Justice O’Sullivan was similarly scathing in their verdict, calling the consequences of Optus' poor conduct saw numerous individuals experience "severe financial harm, emotional distress, and social shame".
In a statement released following Justice O'Sullivan's decision, Optus affirmed that it was entering into an agreement with the ACCC (known as an enforceable undertaking) to improve its sales practices and better support vulnerable customers.
The carrier added that it would be remediating impacted customers as a matter of priority – whether they were part of the regulator’s claim, or they have come forward separately – and making a $1 million donation to support digital literacy for First Nations Australians.
"We have fully remediated most of the customers identified by the ACCC. We are working closely with financial counsellor services to help us identify and support customers impacted by sales misconduct," it said.
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