Optus has issued an apology in response to allegations made by the ACCC over inappropriate sales practises and exploiting vulnerable customers.
The embattled telco found themselves in the ACCC’s crosshairs after it allegedly sold phones to vulnerable customers in remote and regional areas including many First Nations people and others suffering disabilities.
The ACCC alleges many of these customers had diminished cognitive capacity while some were unemployed and had limited ability to make the payments.
“We sincerely apologise to all customers affected by this misconduct and for the distress caused,” said Optus Interim CEO Michael Venter.
“We deeply regret that in these instances we failed to meet the customer service standards that our customers deserve and should expect.
“The misconduct alleged by the ACCC is unacceptable, and completely out of step with our company values and we accept that we need to protect all customers, including those experiencing vulnerability, from this type of behaviour.
“We are remediating affected customers including by providing refunds, waiving outstanding debts and enabling them to keep devices.
“We regret that we did not remediate more quickly in some of these cases.
“Optus does not tolerate employee behaviour which takes advantage of customers.
“We have taken disciplinary action (including terminations) against staff whom we determined were responsible for this misconduct involving vulnerable customers.”
Venter went on to say most of the sales we’re at three licensee-operated Optus stores.
Optus says it will conduct a review which will look at support for vulnerable customers, the introduction of a customer advocacy program, a $5m investment to establish a dedicated specialist care team and changes to credit controls and bad debt monitoring.
In 2021, the Federal Court ordered Telstra to pay a $50m penalty for what it called “unconscionable conduct” when selling mobile contracts to indigenous customers.
At the time it was the second highest ever imposed under the Australian Consumer Law
The Australian Communications Consumer Action Network (ACCAN) condemned the alleged actions of Optus.
“It is a sad day for the telco industry when profits come at the expense of supporting our most vulnerable, and sales incentives drive the exploitation of people who rely on these essential services for their wellbeing and quality of life,” said ACCAN CEO Carol Bennett.
“The ACCC has alleged grave abuses of Australian consumers by Optus, and intense scrutiny and reform is necessary.”
“The ACCC has today painted a sordid picture of alleged exploitative corporate conduct at its very worst. What is alleged simply cannot be allowed to occur in this country and requires decisive action from government.”
“The lack of action from the regulator ACMA in this instance once again demonstrates that there is a need for significant reforms to strengthen the enforcement powers and penalties at its disposal.”
“The current communications consumer protections regime enables the ACMA to act where deficiencies exist in the voluntary industry codes.
“Given the conduct alleged by the ACCC today, consumers expect clear reasons why the ACMA believes this Code is not deficient.”
“ACCAN and Australian consumers expect that, if proven, Optus should be prosecuted and penalised to the fullest extent of the law for any misconduct which is found.”
Comms Alliance CEO Luke Coleman says the allegations against Optus are a reminder that telcos face heavy penalties for this type of behaviour.
“Calls for additional direct regulation as a result of today’s announcement miss the point: existing laws are working exactly as they should,” Coleman said.
“Australian regulators are tigers with teeth – they have strong enforcement powers, and they are not afraid to use them.
“Even with these laws in place, industry is taking further action to strengthen consumer protections around sales practices.
“Communications Alliance is currently updating the Telecommunications Consumer Protection (TCP) Code including a new section focussed on responsible sales practices, with consumer remedies and claw-back of sales incentive payments when mis-selling is identified.”
