Optus is facing legal action for allegedly engaging in inappropriate selling tactics with vulnerable individuals, many of which are First Nations Australians or people from culturally and linguistically diverse backgrounds.
The Australian Competition and Consumer Commission (ACCC) alleges Optus sold telecommunications goods and services to about 429 customers who did not want or need the products.
Many of these consumers were in a disadvantageous situation, such as living with a mental disability, diminished cognitive capacity or learning difficulties, being financially dependent or unemployed, or having limited financial and legal literacy.
In some cases, Optus pursued these consumers for debts resulting from these sales.
“We allege Optus’ conduct disproportionately impacted consumers experiencing vulnerability and/or disadvantage, and that these practices were incentivised by the commission-based remuneration for sales staff,” said Gina Cass-Gottlieb, ACCC chair.
“In some cases, we allege Optus took steps to protect its own financial interests by clawing back commissions to sales staff but failed to remediate affected consumers.”
Cass-Gottlieb added that Optus’ management also failed to fix its system despite already becoming aware of how its sales staff exploited it.
The legal case concerns 363 consumers from two Optus Darwin stores, 42 consumers from the Optus Mount Isa store and 24 individual consumers from store locations across Australia.
The ACCC is seeking penalties, consumer redress, and a compliance program.
This article was first published on sibling website Inside Retail.
