Optus is facing a proposed $100 million penalty following damning findings from the Australian Competition and Consumer Commission (ACCC), which revealed that the telco had engaged in widespread “unconscionable conduct” across 16 of its retail stores between August 2019 and July 2023.
The misconduct involved selling mobile devices and plans to over 400 vulnerable consumers—many of whom were First Nations Australians or individuals with limited English proficiency, cognitive impairments, or financial hardship. In numerous cases, these consumers were misled, pressured, or given no clear explanation of terms before being signed onto services they couldn’t afford, use, or even access due to coverage issues.
The ACCC said Optus pursued some of these customers for debts, even while internal investigations into the misconduct were underway—amplifying the financial and emotional damage caused. According to ACCC deputy chair Catriona Lowe, the toll on affected individuals included not just unexpected debt but also long-term stress, emotional trauma, and years of harassment by debt collectors.
“The conduct, which included selling inappropriate, unwanted or unaffordable services to people experiencing disadvantage, is simply unacceptable,” Lowe said. “It caused significant financial harm and emotional distress. Companies must have systems that protect—not exploit—vulnerable customers.”
Optus has since admitted the conduct and jointly submitted with the ACCC to the Federal Court that a $100 million fine be imposed—one of the largest proposed penalties under Australian Consumer Law. While the court will determine the final amount, the scale of the penalty signals the growing scrutiny on enterprise accountability in consumer-facing sectors.
Optus CEO Stephen Rue issued a public apology, calling the behaviour in its stores “inexcusable and unacceptable.” He said the company had failed to act swiftly enough once red flags were raised internally, but has since launched structural reforms, including:
- Terminating staff involved in the misconduct
- Overhauling executive leadership
- Introducing new sales incentive structures
- Committing $1 million to support digital literacy for First Nations communities
- Hiring financial counsellors to guide affected consumers through the remediation process
“This is not what Optus stands for,” Rue said. “We are holding ourselves to a higher standard, and extensive changes are underway across the business to ensure this never happens again.”
The case also underscores the importance of ethical governance in AI-enabled, digitally driven customer experiences. As telcos and tech companies accelerate automation, personalization, and growth strategies, regulators are becoming more attuned to the risk of systems that may scale harm as easily as they scale revenue.
With a legal resolution still pending, the situation presents a cautionary tale for the broader enterprise tech sector—one where digital transformation, when left unchecked by human-centered oversight, can erode trust and violate the very communities it aims to serve.