Optus Hit with $66M Fine for Exploitative Sales to Vulnerable Customers

BREAKING: Optus has been fined $66 million (AU$100 million) for “appalling” sales practices targeting vulnerable customers, including Indigenous communities in Australia. The ruling was made by Federal Court Justice Patrick O’Sullivan on Wednesday, marking a significant moment in the ongoing scrutiny of the telecommunications giant.

The court found that Optus engaged in unconscionable conduct over a four-year period, misleading hundreds of consumers while applying undue pressure to finalize contracts. This conduct particularly affected individuals with mental disabilities, those facing financial hardship, and people with limited English proficiency. Justice O’Sullivan condemned the actions as “extremely serious” and “predatory,” emphasizing the need for accountability in the industry.

In a shocking revelation, many victims were vulnerable Indigenous individuals living in regional areas, some of whom were outside the range of Optus’ mobile coverage. Sales staff fabricated customer details to secure higher credit approvals, leading to aggressive debt collection practices.

Following the ruling, Optus stated it is “remediating impacted customers as a matter of priority,” although specifics were not provided. The company is also committing AU$1 million (approximately $660,000) to enhance digital literacy for Indigenous Australians. Optus CEO Stephen Rue previously described the breaches as “inexcusable and unacceptable.”

This legal action comes on the heels of another serious issue for Optus—a catastrophic outage on September 18 that left 631 customers unable to connect to emergency services. Tragically, four of those incidents resulted in fatalities. Australian Treasurer Jim Chalmers has announced a government inquiry to investigate the reliability of emergency calls, questioning whether parent company Singtel is providing adequate resources for Optus.

Singtel CEO Yuen Kuan Moon asserted that the company has invested AU$9.3 billion (about $6.2 billion) in Optus over the past five years to improve network infrastructure. Moon reaffirmed their commitment to continued investment to ensure reliable communication services across Australia.

Rue commented on the recent outage, attributing it to “human error” and stressing that it was not an issue of financial expenditure but rather a failure to follow established processes.

As the situation develops, all eyes will be on Optus and the actions taken to restore trust among affected consumers. The implications of these decisions are profound, affecting not just the company’s reputation but also the lives of vulnerable Australians who rely on their services.

Stay tuned for more updates as this story unfolds.