In its decision to approve a $100 million penalty, the Federal Court slammed Optus’ senior management as “predatory” for its failure to urgently stop its stores from exploiting vulnerable consumers.
Justice Patrick O’Sullivan approved a pecuniary penalty of $100 million, which was reached under a settlement agreement between the Australian Consumer and Competition Commission (ACCC) and Optus.
In addition to the monetary sum, Optus has agreed to declarations, to publish a notice of the contraventions under the Australian Consumer Law, pay the ACCC’s costs, and has given an enforceable undertaking that requires it to address the conduct with improvements.
Appearing in the Federal Court earlier this month, the telecommunications giant apologised for the conduct of staff at 16 stores, which saw undue pressure placed on consumers, a failure to properly explain terms and conditions, and the selling of products the staff knew the consumer was unable to afford.
Optus undertook debt recovery action against 42 consumers, who experienced excessive and repeated phone calls, threats of default listings and, in some cases, actual listings with credit reporting bodies.
Many of the affected consumers were First Nations Australians, people with mental disabilities, those suffering from financial hardship, and people with limited English proficiency or learning difficulties.
“The conduct subject of these three categories of unconscionable conduct is extremely serious and can only be described as appalling.
“Optus senior management knew, or ought to have known, of the system failures that allowed the unconscionable conduct, which may rightly be described as predatory, to occur, yet failed to act with any sense of urgency,” Justice O’Sullivan said in a summary.
One of the affected consumers was deaf and mute when they were sold seven contracts between May and November 2021.
His support coordinator made a number of attempts to resolve the issue but struggled. At one point, an Optus staff member requested to speak directly to the consumer, which was impossible due to the consumer’s disability.
At a now closed Mount Isa store, Optus pursued debts in circumstances where senior management was aware that the debts related to contracts that had been entered into without the knowledge of the affected consumers, many of whom were First Nations.
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
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