[SINGAPORE] Optus Mobile has reached a settlement with the Australian Competition and Consumer Commission (ACCC), which filed court proceedings against it over alleged sales misconduct, the Singtel subsidiary said on Wednesday (Jun 18).
The legal proceedings, filed in the Federal Court of Australia, accused Optus of acting unconscionably and conducting inappropriate sales practices in dealings with around 429 customers between August 2019 and July 2023.
The settlement includes a proposed penalty of A$100 million (S$83.4 million), which will be considered by the Federal Court for approval, and an enforceable undertaking to implement change.
The penalty is fully provided for in the previous financial year ended Mar 31, 2025.
Under the terms of the enforceable undertaking, Optus said it is taking steps to address the misconduct. These include making changes to its retail processes, systems and sales incentives.
It added that it has apologised to affected customers and is providing them with remediation.
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Sales misconduct
In October 2024, Singtel announced that ACCC had lodged legal proceedings against Optus for allegedly selling mobile phones and plans to vulnerable customers, including individuals with diminished cognitive capacity and learning disabilities.
Sales staff allegedly manipulated credit check results without consumers’ knowledge to sell mobile phones and plans they could not afford, as well as failed to explain the terms and conditions in an understandable manner.
The company was also accused of engaging debt collectors to pursue customers, despite knowing that their contracts were created fraudulently. It allegedly referred and sold consumers’ debt to third-party debt collection agencies.
This caused many consumers to suffer financial harm, incurring thousands of dollars of debt, as well as non-financial harm, such as shame, fear and emotional distress about the debts or from being pursued by debt collectors, said ACCC chairperson Gina Cass-Gottlieb.
In response to the allegations, Optus said it was addressing affected customers by providing refunds, waiving outstanding debts and allowing them to keep their mobile phones.
