HomeBusinessACCC Files Federal Court Case Against Optus Over Alleged Unconscionable Sales Conduct

ACCC Files Federal Court Case Against Optus Over Alleged Unconscionable Sales Conduct

Allegations of Misleading Sales Practices and Unfair Debts Targeting Vulnerable Consumers

The Australian Competition and Consumer Commission (ACCC) has initiated a lawsuit in the Federal Court against Optus, Australia’s second-largest telecommunications provider, alleging unconscionable sales practices that contravene Australian Consumer Law. The ACCC claims that Optus engaged in unfair sales practices by pressuring vulnerable consumers, including First Nations Australians and individuals with disabilities, to purchase products they did not need or could not afford.

Many of the consumers affected were from remote areas with limited access to Optus services. The ACCC alleges that Optus staff, motivated by commission-based pay, manipulated credit checks, sold expensive products under misleading conditions, and pressured consumers into costly contracts without conducting necessary coverage checks. Additionally, Optus allegedly pursued debts, sometimes involving third-party debt collectors, despite awareness of improper sales practices.

One example involves a consumer with an intellectual disability who was sold an unnecessary business contract and products they did not need. Despite visible distress, store staff initially refused to cancel these agreements. The ACCC aims to secure penalties, consumer redress, and a compliance program to prevent future misconduct. ACCC Chair Gina Cass-Gottlieb emphasized the importance of protecting consumers in vulnerable situations and indicated the ACCC’s commitment to holding corporations accountable.

Source ACCC

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