October 31st 2024.
The Australian Consumer Watchdog has decided to take legal action against Optus, accusing the telecommunications company of behaving in an unconscionable manner towards vulnerable customers. According to the Australian Competition and Consumer Commission (ACCC), Optus has allegedly engaged in improper conduct towards 429 customers by pressuring them into purchasing services they did not need, want, or could afford. Furthermore, the ACCC claims that Optus pursued these customers for debts resulting from these services, even though they were aware that these services were inappropriately or fraudulently obtained.
The majority of the customers impacted by these alleged actions were vulnerable or disadvantaged in some way. This includes individuals with mental disabilities, diminished cognitive capacity, learning difficulties, and those who were financially dependent, unemployed, or had limited financial and legal literacy. The ACCC also noted that many of these customers were Indigenous Australians from regional and remote areas.
ACCC Chair Gina Cass-Gottlieb expressed concern over Optus' conduct, stating that the company's commission-based remuneration for sales staff may have incentivized these actions. The ACCC also alleges that Optus continued with these unconscionable practices even after management became aware of deficiencies in their systems and failed to implement fixes.
One of the examples of this alleged misconduct involved a person with an intellectual disability who was sold expensive products and services they did not need or want. When their representative tried to return these items, Optus staff refused to cancel the contracts, and it was only through the intervention of a financial counselor that the contracts were canceled.
Another example cited by Cass-Gottlieb involved staff deliberately targeting a young woman with a disability by encouraging her to come into the store without her carer. This resulted in her being sold multiple products, incurring debts, and being pursued by debt collectors. The ACCC believes that this deliberate and targeted conduct is not isolated and is prevalent at both the sales and management levels.
In total, the ACCC alleges that Optus' conduct has impacted 363 customers at two Darwin stores, 42 at the Mount Isa store, and 24 at other locations across Australia. These customers have suffered both financial and non-financial harm, including thousands of dollars in debt and emotional distress.
The ACCC is seeking a range of orders from the federal court, including penalties, costs, and redress for affected customers. In response to these allegations, Optus has stated that they are currently reviewing the claims and will provide a more detailed response in due course. The ACCC is urging anyone who believes they may have been impacted by Optus' unconscionable conduct to come forward and seek redress.
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