Australia’s telecommunications company, Optus, has apologized for its “misconduct and distress caused” to vulnerable customers.
The Australian Competition and Consumer Commission (ACCC) is suing Optus for contravening Australian consumer law by selling telecommunications goods and services to hundreds of consumers. They often did not want or need it and, in some cases, then pursued consumers for debts resulting from these sales.
Optus interim CEO Michael Venter says they “deeply regret that in these instances we failed to meet the customer service standards.”
Why is the ACCC suing Optus?
Many of these consumers were vulnerable, says the government entity. Some were living with a mental disability, diminished cognitive capacity or learning difficulties, being financially dependent or unemployed, or having limited financial and legal literacy.
Venter acknowledges that the alleged misconduct is unacceptable. The majority of the sales occurred at three licensee-operated stores.
ACCC chair Gina Cass-Gottlieb says they further alleged that the telecommunications company took steps to protect its own financial interests. They used clawing back commissions to sales staff but failed to remediate affected consumers.
What steps will Optus take?
The telecommunications company has vowed to waive outstanding debts and enable the affected customers to keep their devices. “We regret that we did not remediate more quickly in some of these cases,” says Venter.
Disciplinary action is now underway against the involved staff who were responsible for the misconduct involving vulnerable customers.
ACCC seeks penalties
The alleged conduct involves 363 consumers from two Darwin stores and 42 consumers from the Optus Mount Isa store. It also involves 24 individual consumers from store locations across Australia.
The ACCC is seeking declarations and orders for penalties, non-party consumer redress, publication orders, a compliance program, and costs.
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Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
