The Federal Court has ordered Optus Mobile Pty Ltd to pay a $100 million penalty after admitting it engaged in unconscionable conduct when selling mobile phones and contracts to hundreds of Australians and in subsequent debt‑collection activity, the Australian Competition and Consumer Commission (ACCC) said.
The conduct, the ACCC said, occurred at 16 Optus stores between August 2019 and July 2023 and affected more than 400 consumers. Many of those people were vulnerable or experiencing disadvantage — including people living with mental disability, diminished cognitive capacity or learning difficulties, those who were financially dependent or unemployed, people with limited financial literacy or who do not speak English as a first language, and many First Nations Australians in regional, remote and very remote areas.
In several cases consumers were sold phones and plans they did not want, could not use or could not afford, and were later pursued for debts arising from those sales. The ACCC said examples included sales staff putting undue pressure on customers to buy multiple, expensive products; failing to explain contract terms to people with communication barriers; selling services where there was no Optus coverage; and misleading customers into believing goods were free or included in a bundle at no extra cost.
“Optus’s conduct in this case was truly appalling, and we welcome the substantial penalty imposed by the Court and the deterrence message that it will send,” ACCC Deputy Chair Catriona Lowe said.
“During the course of our investigation we heard from many people who had not only experienced significant financial harm, but also emotional distress and fear after being pursued by debt collectors for long periods.”
“A company of Optus’s size should have had better systems and controls in place to identify and stop this sort of behaviour,” Ms Lowe said.
Justice O’Sullivan, handing down the decision, said the consequences of Optus’s conduct were “profound”.
“Numerous individuals experienced severe financial harm, emotional distress, and social shame,” he said. “Particularly damaging was the heightened risk of losing access to essential telecommunications services when faced with inflated service costs.”
Optus has admitted breaching the Australian Consumer Law and agreed with the ACCC to a $100 million penalty. The company has also provided a five‑year court‑enforceable undertaking that includes a consumer remediation program, changes to sales remuneration and incentives, steps to bring certain licencee stores under direct Optus operation in parts of the Northern Territory, regional Queensland and South Australia, improvements to processes and systems — including complaints handling for consumers experiencing vulnerability — and a $1 million donation to an organisation supporting digital literacy for First Nations Australians. The court also ordered Optus to contribute to the ACCC’s costs.
The ACCC said an internal investigation at Optus’s Mount Isa store — now closed — found a store manager had falsified identity documents and consumer information to create contracts in the names of First Nations customers who were unaware their identities had been used. One report identified 82 contracts that appeared to have been fraudulently completed. Despite being warned of the conduct, the ACCC says Optus continued to refer some of the outstanding debts to third‑party collection and factoring agencies, with some consumers pursued by debt collectors as late as July 2024.
The ACCC drew attention to the role of commission‑based sales arrangements, which it said had the clear potential to incentivise inappropriate conduct. From 17 June 2022 the Telecommunications Consumer Protections Code required Optus to have regard to the ACCC’s best practice recommendations, which advise businesses to avoid commission‑based selling because of its potential to exacerbate consumer vulnerability.
The action follows similar proceedings against Telstra, which in May 2021 was ordered to pay a $50 million penalty for unconscionable sales to 108 First Nations customers.
Optus has been asked to directly contact consumers who may have been affected. Customers who think they may have been impacted can call Optus’s specialist customer care team on 1300 082 820 or visit the Sales Misconduct Response page on Optus’s website for further information and support.
The ACCC began court proceedings against Optus on 31 October 2024 after a referral from the Telecommunications Industry Ombudsman. On 18 June 2025 Optus admitted to engaging in unconscionable conduct and agreed to the $100 million penalty, subject to court approval.
The ACCC also cautioned that scammers may try to exploit the media coverage, warning people not to share personal information or money in response to unsolicited calls, texts or emails claiming to assist with compensation. Consumers experiencing suspected scams should contact their bank, call IDCARE on 1800 595 160 if they have provided personal information, and report scams to the National Anti‑scam Centre’s Scamwatch.
