Optus Faces $100 Million Penalty for Unconscionable Conduct Toward Vulnerable Consumers — What Businesses Must Learn

Published: 23 June 2025

Based on ACCC Media Release – 18 June 2025

Source: ACCC

Telecommunications giant Optus has agreed to pay a $100 million penalty, subject to Federal Court approval, after admitting to unconscionable conduct in the sale of mobile products and services to more than 400 vulnerable and disadvantaged consumers.

This is one of the most significant enforcement actions ever brought by the Australian Competition and Consumer Commission (ACCC) under the Australian Consumer Law, and it highlights serious systemic failures in compliance, ethics, and governance.

At Bane Legal Services, we don’t provide legal advice — but we do connect businesses with trusted, highly experienced Australian commercial lawyers. If your business sells to consumers, particularly those experiencing vulnerability, this case is a timely reminder to review your sales practices, internal systems and incentive structures with legal support.

What Went Wrong at Optus?

Between August 2019 and July 2023, sales staff at 16 Optus stores across Australia — including locations in Darwin, Mount Isa, and other regional centres — allegedly sold expensive phones and contracts to consumers who:

• Didn’t want or need the products

• Couldn’t afford them

• Didn’t understand what they were agreeing to

• Lived in areas without Optus coverage

Worse still, many consumers were pursued by debt collectors for contracts that should never have been entered into.

According to the ACCC, many affected consumers were:

• First Nations Australians from regional and remote communities

• Living with mental or cognitive disabilities

• Financially dependent, unemployed, or with limited English or financial literacy

ACCC Deputy Chair Catriona Lowe stated:

“The conduct… is simply unacceptable. These consumers accrued thousands of dollars in unexpected debt and were often pursued by debt collectors — some for years.”

Key Allegations

Optus has admitted to several failures, including that its staff:

• Pressured vulnerable consumers into unaffordable purchases

• Misled customers into believing phones and accessories were “free”

• Failed to explain terms in ways consumers could understand

• Manipulated credit checks, including falsifying ABNs and ID documents

• Continued to pursue debts even after internal investigations flagged improper conduct

Systemic Failure: Commission-Based Sales and Weak Oversight

The ACCC found that commission-based sales incentives may have contributed to the unethical practices — a key concern already raised by the Telecommunications Consumer Protections Code in 2022.

Optus management allegedly knew about the issues but failed to take adequate steps to stop them. In some cases, internal investigations revealed fraudulent activity, yet debts linked to those transactions were still sold to debt collection agencies, with some consumers facing legal threats as late as 2024.

Compensation and Remediation Plan

Optus has signed an Enforceable Undertaking, accepted by the ACCC, and has committed to:

• Compensating impacted consumers

• Donating $1 million to support digital literacy among First Nations Australians

• Improving complaint handling, training, and sales oversight

• Reforming its debt collection and sales commission systems

• Buying back 34 licensee stores in the NT, QLD, and SA to tighten oversight

The enforceable undertaking will come into force once the Court makes final orders.

Consumers who believe they may have been affected can contact Optus's specialist care team on 1300 082 820.

Lessons for Australian Businesses

If your business engages in direct sales, bundling, or credit-based offers, especially in vulnerable communities, this case is a serious warning:

• Consumer vulnerability must be considered in all sales practices

• Commission-based incentives can encourage unlawful or unethical behaviour

• Failure to respond to known risks within your sales operations can result in massive penalties

• Debt collection practices must be handled with extra care, especially where misconduct is suspected

How Bane Legal Services Can Help

At Bane Legal Services, we help businesses take proactive steps to avoid being the next enforcement headline.

Whether you need to review your sales processes, remuneration policies, compliance frameworks, or contract terms, we’ll match you with an expert Australian lawyer who understands:

• Australian Consumer Law

• Sales and marketing compliance

• Telecommunications and retail risk

• Remediation, disputes, and enforceable undertakings

Need a legal compliance check-up for your retail or service business?

Let’s connect you with the right lawyer — before regulators come knocking.

Disclaimer: This blog is based on a media release published by the Australian Competition and Consumer Commission (ACCC). Bane Legal Services is not a law firm and does not provide legal advice. For personalised legal assistance, we can introduce you to a qualified commercial lawyer.