Federal regulators are sounding the alarm over how disadvantaged Australians—particularly those in remote and regional areas—were sold unwanted or unaffordable mobile devices and plans by Optus.
According to the Australian Competition and Consumer Commission (ACCC), Optus Mobile Pty Ltd engaged in “unconscionable conduct” affecting over 400 vulnerable customers across 16 stores between August 2019 and July 2023.
Many of those affected lived with mental disability, had limited financial literacy, were financially dependent, or spoke English as a second language. Importantly, a significant proportion were First Nations Australians from remote parts of Queensland, the Northern Territory and other regions—individuals who rely heavily on their phones for connection.
Leveraging debt collectors, Optus pursued these consumers for debts they either did not fully understand or had unknowingly accrued. Thus, a consumer in Mount Isa—whose store has since closed—was charged for multiple plans and devices that cost several thousand dollars over two years, despite having no mobile coverage in their area and without their informed consent.
The ACCC and Optus have jointly proposed that the Federal Court impose a $100 million penalty under the Australian Consumer Law. However it is up to the Court to determine whether that penalty is appropriate and to grant compensation to the affected consumers.
ACCC Deputy Chair Catriona Lowe said “The conduct, which included selling inappropriate, unwanted or unaffordable mobiles and phone plans to people who are vulnerable or experiencing disadvantage is simply unacceptable.”
She also highlighted that many of these individuals endured significant financial loss and emotional distress, with some even pursued by debt collectors years after a contract was signed.
Importantly, Ms Lowe added: “It is not surprising, and indeed could and should have been anticipated, that this conduct caused many of these people significant emotional distress and fear.”
She also criticised Optus for failing to promptly address warning signs, “We are particularly concerned that Optus engaged debt collectors to pursue some of these consumers after it had launched internal investigations into the sales conduct.”
Optus has admitted its wrongdoing and offered to pay compensation while promising internal reforms. These include revising complaint handling, improving staff training, removing commission‑based incentives that may encourage inappropriate sales and modifying debt collection protocols. In addition, Optus plans to donate $1 million towards digital literacy programs for First Nations Australians and is reacquiring 34 licensee‑run stores in the Northern Territory, Queensland and South Australia.
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The misconduct echoes a similar case involving Telstra in 2021, in which a $50 million penalty was imposed for selling unfair mobile contracts to Indigenous consumers. This pattern suggests persistent vulnerabilities within telecommunications sales practices.
Experts in communications warn that this saga illustrates deeper systemic failures—which also play out in public messaging and consumer trust. When companies are slow to acknowledge harm and stop poor practices, reputational damage compounds. Worse, digitised channels and social media outreach can mask unresolved issues and give the illusion everything is under control.
With the ACCC’s action, affected consumers can contact a specialist team at Optus on 1300 082 820. The Federal Court will ultimately decide penalties, compensation and whether the reforms are legally enforced through its final orders.
