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The Australian Competition and Consumer Commission (ACCC) says the operator’s sales staff had acted “unconscionably” towards hundreds of vulnerable customers
This week, Australia consumer watchdog the ACCC has launched a legal suit against telco giant Optus, alleging that 429 customers had been affected by ‘misconduct’ from Optus’ sales staff over a two-year period up to June 2023.
The suit alleges that sales staff used aggressive tactics to pressure customers to buy expensive and unnecessary mobile products, many of which they could not afford. Some were even sold mobile products despite being from remote parts of the Northern Territory currently without mobile coverage.
These actions disproportionately affected vulnerable customers, some of which were even chased by debt collectors following these purchases.
“We allege Optus’ conduct disproportionately impacted consumers experiencing vulnerability and/or disadvantage, and that these practices were incentivised by the commission-based remuneration for sales staff,” the ACCC’s chair, Gina Cass-Gottlieb. “In some cases, we allege Optus took steps to protect its own financial interests by clawing back commissions to sales staff but failed to remediate affected consumers.”
The ACCC is asking the court to issue financial penalties to the operator, order them to renumerate and implement a compliance programme.
According to Optus, the salespeople responsible for the misconduct have already been reprimanded.
“We have taken disciplinary action (including terminations) against staff whom we determined were responsible for this misconduct involving vulnerable customers,” Optus Interim CEO Michael Venter told Reuters via email.
He also noted that the company has already begun remediating affected customers through refunds, waiving outstanding debts, and enabling them to keep devices.
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