Singtel-owned Optus to pay $84 million fine over alleged sales misconduct
Sign up now: Get ST's newsletters delivered to your inbox
Optus was accused of "unconscionable conduct" in its sales tactics with hundreds of consumers.
PHOTO: OPTUS
Follow topic:
SINGAPORE - Australia’s competition watchdog said on June 18 that Singtel subsidiary Optus has reached a settlement over allegations of “unconscionable conduct” in selling telecoms goods and services to hundreds of consumers.
The settlement includes a A$100 million (S$83.5 million) fine, the Australian Competition and Consumer Commission (ACCC) said in a statement, adding that the federal court is yet to determine whether the penalty is appropriate.
The legal proceedings, filed in the Federal Court of Australia, accused Optus of acting unconscionably and conducting inappropriate sales practices in dealings with around 429 customers between August 2019 and July 2023.
The penalty is fully provided for in the previous financial year ended March 31, 2025, Optus said.
Under the terms of the enforceable undertaking, Optus said it is taking steps to address the misconduct.
These include making changes to its retail processes, systems and sales incentives.
It added that it has apologised to affected customers and is providing them with remediation.
Sales misconduct
In October 2024, Singtel announced that ACCC had lodged legal proceedings against Optus for allegedly selling mobile phones and plans to vulnerable customers, including individuals with diminished cognitive capacity and learning disabilities.
Sales staff allegedly manipulated credit check results without consumers’ knowledge to sell mobile phones and plans they could not afford, as well as failed to explain the terms and conditions in an understandable manner.
The company was also accused of engaging debt collectors to pursue customers, despite knowing that their contracts were created fraudulently.
It allegedly referred and sold consumers’ debt to third-party debt collection agencies.
This caused many consumers to suffer financial harm, incurring thousands of dollars of debt, as well as non-financial harm, such as shame, fear and emotional distress about the debts or from being pursued by debt collectors, said ACCC chairwoman Gina Cass-Gottlieb.
In response to the allegations, Optus said it was addressing affected customers by providing refunds, waiving outstanding debts and allowing them to keep their mobile phones.
Shares of Singtel closed at $3.97 on June 18, up four cents or 1 per cent. THE BUSINESS TIMES
