The Australian Competition and Consumer Commission (ACCC) is suing Optus claiming that the carrier who crashed Australia in 2023 engaged in unconscionable conduct when selling phone products to vulnerable customers.
Many were disadvantaged customers from remote and regional areas, as well as customers living with disabilities or in disadvantage.
What’s not known is how many of sellers were franchisees Vs Optus operated businesses.
In Australia, Optus’ stores are either owned and operated directly by Optus RetailCo Pty Ltd, or owned and operated through third party licensees, through Retail License Agreements.
Currently all Optus stores in the Adelaide region are owned and operated by Mavaya Pty Ltd, and all Optus stores in the Northern Territory, as well as several in regional Queensland, are owned and operated by Suntel Communications Pty Ltd.
The ACCC claims Optus sold goods and services to hundreds of consumers that they “often did not want or need”.
Their against Optus involves allegations that Optus acted unconscionably in its dealings with about 429 consumers by engaging in inappropriate sales conduct and/or pursuing consumers for debts, including when it knew contracts were created fraudulently.
The conduct included Optus allegedly putting undue pressure on some of these consumers to purchase a large number of products, including expensive phones and accessories, and not undertaking coverage checks to inform the consumer whether they would have Optus coverage where they lived.
It is alleged that Optus engaged debt collectors to pursue many of these consumers, despite knowing that they were subject to inappropriate or fraudulent sales conduct.
The alleged conduct involves 363 consumers from two Optus Darwin stores, 42 consumers from the Optus Mount Isa store and 24 individual consumers from store locations across Australia.
“We are taking this action against Optus and seeking consumer redress in relation to the hundreds of consumers affected by this alleged unconscionable conduct,” Ms Cass-Gottlieb said.
The ACCC began its investigation after receiving a referral from the Telecommunications Industry Ombudsman about concerns regarding Optus’ sales practices to consumers experiencing vulnerability and/or disadvantage.
The ACCC is seeking declarations and orders for penalties, non-party consumer redress, publication orders, a compliance program, and costs
The telecommunications company is accused of then pursuing consumers for debts that resulted from those sales.
In relation to four of these consumers, the ACCC also claims that Optus made false, misleading or deceptive representations that particular goods were ‘free’ when that was not in fact the case.
“Many consumers suffered financial harm, incurring thousands of dollars of debt and non-financial harm, such as shame, fear, and emotional distress about the debts or being pursued by debt collectors,” Ms Cass-Gottlieb said.
“Thankfully many consumers were supported by financial counsellors, carers and other advocates who gave their time and effort to support consumers to eventually seek resolution of Optus’ conduct.”
“We will take appropriate enforcement action against breaches of the Australian Consumer Law, and we pay particular attention to conduct that disproportionately impacts consumers who are experiencing vulnerability or disadvantage.”
