Optus Fined $100 Million for Predatory Sales Practices Targeting Vulnerable Australians

Federal Court Imposes Landmark Fine on Optus

The Federal Court of Australia has imposed a substantial penalty of AU$100 million on telecommunications giant Optus for engaging in predatory and unconscionable sales practices. The ruling, delivered on Wednesday, September 24, 2025, follows a case brought by the Australian Competition and Consumer Commission (ACCC), which found Optus staff systematically exploited vulnerable customers across the country. Justice Patrick O'Sullivan described Optus's conduct as 'appalling' and 'extremely serious,' highlighting a 'manifest betrayal of trust'.

Systematic Exploitation of Vulnerable Customers

The court found that between January 2019 and September 2023, Optus sales staff, driven by commission-based incentives, targeted hundreds of individuals experiencing disadvantage. These included:

• First Nations people from remote communities
• Individuals with cognitive and intellectual disabilities
• The elderly
• People with low financial literacy or limited English proficiency
• Those experiencing financial hardship or unemployment

The misconduct was widespread, affecting over 400 consumers at 16 Optus stores nationwide. Sales staff employed a range of deceptive tactics, including pressuring customers into purchasing multiple devices and plans they did not need, could not afford, or could not use. In some egregious cases, services were sold to individuals residing in areas with no Optus network coverage. The court also heard instances of staff fabricating customer details to secure higher credit approvals and manipulating credit checks.

Management Awareness and Debt Collection

Evidence presented in court revealed that Optus senior management was aware of deficiencies in its systems and the inappropriate practices being exploited by sales staff, yet failed to implement timely and effective fixes. Furthermore, Optus pursued aggressive debt collection against affected customers, even when internal investigations indicated that contracts might have been created fraudulently. One particularly distressing example involved a man who was deaf, mute, and had partially amputated fingers, who was signed up for four contracts totaling over AU$7,500. Another case detailed a woman with cerebral palsy and ADHD trapped in 24 separate contracts, leading to significant financial distress.

Remediation and Future Undertakings

In addition to the AU$100 million fine, Optus has agreed to a five-year court-enforceable undertaking with the ACCC. This commitment includes compensating impacted consumers and overhauling its internal systems and sales practices to prevent future breaches. Optus will also pay the ACCC's legal costs of $1.5 million and publish corrective notices. As part of its remediation efforts, Optus has committed to buying back 34 licensee stores, particularly those where misconduct occurred, to bring them under direct company management. The company will also donate AU$1 million to an organization dedicated to improving digital literacy for First Nations Australians. This case follows a similar ACCC action against Telstra in 2021, which resulted in a $50 million penalty for unconscionable conduct involving Indigenous consumers.