This telecom company pressured vulnerable customers to buy unwanted phones and subscriptions. Now a lawsuit is being filed against it!

Australia’s competition watchdog is taking legal action against Optus, a giant telecom company in the country Down Under. The accusations? Serious misconduct in Optus’ sales practices, particularly towards vulnerable customers.

The ACCC (Australian Competition and Consumer Commission) alleges that Optus sold mobile phones and plans mainly to vulnerable customers, who did not need or understand the things they were being offered. The ACCC said staff deliberately targeted vulnerable people, including people with intellectual disabilities.

We get the full story from the Australian 9news report. The ACCC accused the country’s second-largest telco of misconduct against 429 customers, claiming it pressured them to purchase unnecessary, unwanted and unaffordable services.

After the allegations were made public, Optus interim CEO Michael Venter apologized, expressing regret for the distress caused by the misconduct and acknowledging that Optus had failed to meet acceptable customer service standards.

He stressed that the conduct alleged by the ACCC was unacceptable and contrary to the company’s values, stating that Optus had dismissed some of the staff involved in the misconduct.

Optus also announced it is taking steps to address the impact on affected customers by offering refunds, forgiving debt and allowing customers to keep their devices, although Venter acknowledged delays in these recovery efforts.

Don’t let telecom companies sell you something you don’t need. | Image credit – PhoneArena

Optus has been accused not only of pressuring vulnerable customers into purchases they did not need, but also of aggressively pursuing the resulting debts, even calling in debt collectors in the event of fraudulent charges.

The ACCC highlighted that those affected often faced challenges such as cognitive disabilities, financial dependence and limited financial understanding, with many being Indigenous Australians from remote areas.

ACCC chair Gina Cass-Gottlieb explained that the sales practices disproportionately targeted vulnerable groups and were motivated by commission incentives for sales staff; she also noted that Optus management had allegedly failed to address systemic issues even after being made aware of them.

In one example cited, an intellectually disabled person, who did not understand finances, was sold a valuable package, including a telephone, a business contract and an Internet subscription under a false business ID, causing emotional distress.

The ACCC reported additional cases, such as a young woman with a disability who was encouraged to visit an Optus store without her caregiver, leading to multiple purchases and ultimately a debt collection.

With 363 affected customers in the Darwin stores, 42 in Mount Isa and 24 in other locations, Cass-Gottlieb said many suffered not only financially but emotionally as they felt shame and fear about debt collection.

The ACCC is seeking federal court orders for fines, customer recovery and costs, while Venter highlighted Optus’ commitment to cooperating with the investigation and improving support for vulnerable customers, including appointing a customer advocate and strengthening of partnerships with community groups.

Now that I think about it, I’ve been pressured so many times by greedy telecom companies to get a new (more expensive) plan that I think my home country’s regulators should take someone to court too.