Optus Ordered to Pay $100 Million for Unconscionable Conduct: Lessons for Australian Businesses

Australia’s second-largest telco, Optus, has been hit with a record $100 million penalty after the Federal Court found it engaged in unconscionable conduct when selling mobile phones and contracts to vulnerable Australians.

Optus hit with $100m court penalty for unconscionable conduct in phone sales — a key lesson for businesses on compliance with consumer law.

This case, brought by the Australian Competition and Consumer Commission (ACCC), sends a strong reminder to all businesses — from major corporates to franchise operators — about the importance of ethical sales practices, compliance with the Australian Consumer Law, and protecting vulnerable customers.

👉 Read the original ACCC media release here.

What Happened?

The Court found that between 2019 and 2023, Optus engaged in sales practices that:

• Pressured vulnerable consumers into buying phones, accessories and plans they didn’t want, need, or could afford.

• Failed to explain key contract terms in ways customers could understand.

• Sold services where no Optus coverage was available.

• Misled consumers into believing some products were free.

• Pursued debts through external collectors — even when sales had been made fraudulently.

Over 400 consumers were impacted across 16 Optus stores. Many were First Nations Australians, people with disabilities, or individuals facing financial hardship.

Justice O’Sullivan described the consequences of Optus’s conduct as “profound”, with affected individuals suffering financial harm, emotional distress, and social shame.

The Court’s Response

• Optus admitted to unconscionable conduct and agreed with the ACCC that a $100 million penalty was appropriate.

• The company also provided a five-year court-enforceable undertaking to:

  • Compensate impacted customers through a 3-year remediation program.

  • Overhaul its complaints-handling processes.

  • Reform commission-based sales incentives.

  • Directly operate certain regional stores instead of outsourcing them.

  • Donate $1 million to support First Nations digital literacy initiatives.

This decision follows a similar case against Telstra in 2021, which resulted in a $50 million penalty for comparable conduct.

Why It Matters for Businesses

This case is more than just a warning for big telcos. It’s a wake-up call for all businesses that deal with customers under contract.

Key takeaways include:

• Transparency matters – customers must understand what they are signing up for.

• Vulnerable customers require extra care – failing to safeguard them can lead to massive penalties.

• Sales incentives can backfire – commission structures that encourage aggressive selling can put your business at legal risk.

• Compliance systems are non-negotiable – if senior management is aware of misconduct but fails to act, liability escalates quickly.

How Bane Legal Services Can Help

At Bane Legal Services, we’re not a law firm and we don’t provide legal advice. Instead, we act as your trusted legal matchmaker — helping you find the right commercial lawyer to protect your business from risks like those seen in the Optus case.

With over 30 years of business experience, we know the importance of compliance and ethical practices. If you’re concerned about consumer law obligations, sales processes, or compliance frameworks in your business, the right lawyer can help you:

• Review contracts and sales practices.

• Establish compliance training and policies.

• Navigate ACCC investigations and enforcement risks.

✅ Don’t wait for an ACCC penalty to find out where your business stands. Contact Bane Legal Services today — we’ll connect you with the right commercial lawyer for your needs.

Source: This article is based on the ACCC media release: Federal Court orders Optus to pay $100m penalty for unconscionable conduct (24 September 2025).