Optus faces $100m penalty in sales tactics case

Optus Mobile could be penalised $100 million after some of its licensees engated in pressure sales tactics to sell expensive phones and services to hundreds of vulnerable consumers.

The telco has agreed on the penalty amount with Australia’s competition watchdog, but it must be approved by the Federal Court.

The Australian Competition and Consumer Commission (ACCC) took Optus to court in October last year.

Optus at the time acknowledged the sales tactics, apologised for their use, and said it would cooperate with an ACCC investigation.

In addition to the $100 million penalty, Optus has agreed to “compensate impacted consumers and improve its internal systems”.

The ACCC indicated that compensation is already starting to be paid.

ACCC deputy chair Catriona Lowe said in a statement that affected consumers suffered “significant emotional distress and fear”; some were chased by debt collectors.

The undertaking also commits Optus to make a $1 million donation “to an organisation facilitating digital literacy of First Nations Australians”, to change how sales staff are remunerated, and to buy back licensee stores that engaged in the pressure tactics.

Optus CEO Stephen Rue said in a statement that "the misconduct was inexcusable and unacceptable." Rue was not leading the telco when the activity occurred.

“I would like to sincerely apologise to all customers affected by the misconduct in some of our stores,” Rue said.

“Optus failed these customers, and the company should have acted more quickly when the misconduct was first reported.

"I am leading the implementation of extensive changes across the company with active responses to the issues raised well underway.

“However, there is much more to do as we work to regain our customers' trust and improve support and protections for them, especially for those who are vulnerable."

Optus said that the proposed penalty is "fully provided for in the previous financial year ended March 31 2025."

Impacted consumers can call an Optus specialist customer care team on 1300 082 820 for further information or support.