Optus agrees to $100m penalty for selling phones to customers who couldn’t afford them or were out of range
Telco's chief executive says company failed customers' and conduct was inexcusable
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Optus has agreed to pay a $100m penalty after conceding it engaged in unconscionable conduct when selling phones and contracts to hundreds of customers that could not afford them, did not want them, or didn't even have coverage to use them.
The negotiated penalty, if approved by a federal court judge, came after court action taken against Optus by the consumer regulator. If imposed, it would be the largest ever for the telco sector.
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putting pressure on consumers to buy a large number of products they did not want or need, could not use or could not afford;
failing to explain relevant conditions to vulnerable consumers, resulting in them not understanding ongoing payment obligations;
ignoring whether customers had Optus coverage where they lived.
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