Australian Competition and Consumer Commission v Optus Mobile Pty Limited
[2025] FCA 1177
•24 September 2025
FEDERAL COURT OF AUSTRALIA
Australian Competition and Consumer Commission v Optus Mobile Pty Limited [2025] FCA 1177
File number(s): SAD 229 of 2024 Judgment of: O'SULLIVAN J Date of judgment: 24 September 2025 Catchwords: CONSUMER LAW – unconscionable conduct in contravention of the Australian Consumer Law – misleading and deceptive conduct in the contravention of the Australian Consumer Law – where the respondent admitted to multiple contraventions of ss 18, 21 and 29 of the Australian Consumer Law – where the parties jointly proposed pecuniary penalty and other orders by way of relief – whether quantum of the agreed pecuniary penalty is appropriate – where conduct targeted vulnerable consumers – conduct extremely serious – failures by the respondent to address known system deficiencies which facilitated the unconscionable conduct – consideration of principles applicable when fixing a civil penalty – specific and general deterrence – orders made in the terms sought by the parties. Legislation: Australian Securities and Investments Commission Act 2001 (Cth) s 12DB
Competition and Consumer Act 2010 (Cth) ss 87B, Sch 2 (Australian Consumer Law) ss 18, 21, 22, 29, 224, 246
Federal Court of Australia Act 1976 (Cth) ss 21, 23, 43
Telecommunications Act 1997 (Cth)
Cases cited: ACCC v Australian Private Networks Pty Ltd [2019] FCA 384
ACCC v Birubi Art Pty Ltd (in liq) (ACN 118 654 366) (No 3) [2019] FCA 996; (2019) 374 ALR 776
ACCC v Coles Supermarkets Australia Pty Ltd [2015] FCA 330; (2015) 327 ALR 540
ACCC v Employsure Pty Ltd (ACN 145 676 026) [2023] FCAFC 5; (2023) 407 ALR 302
ACCC v Lux Distributors Pty Ltd [2013] FCAFC 90
ACCC v Optus Internet Pty Ltd [2018] FCA 777
ACCC v Optus Internet Pty Ltd [2019] FCA 2221
ACCC v Optus Internet Pty Ltd [2022] FCA 1397
ACCC v Optus Mobile Pty Ltd [2019] FCA 106
ACCC v Reckitt Benckiser (Australia) Pty Ltd [2016] FCAFC 181; (2016) 340 ALR 25
ACCC v Telstra Corporation Ltd (ACN 051 775 556) [2021] FCA 502; (2021) 392 ALR 614
ACCC v TPG Internet Pty Ltd [2013] HCA 54; (2013) 250 CLR 640
ACCC v Trivago NV (No 2) [2022] FCA 417; (2022) 159 ACSR 353
ACCC v Qantas Airways Ltd [2024] FCA 1219
ACCC v Yazaki Corporation [2018] FCAFC 73; (2018) 262 FCR 243
Ainsworth v Criminal Justice Commission [1992] HCA 10; (1990) 175 CLR 564
ASIC v Kobelt [2019] HCA 18; (2019) 267 CLR 1
ASIC v McDougall [2006] FCA 427; (2006) 229 ALR 158
ASIC v Web3 Ventures Pty Ltd (Penalty) [2024] FCA 578
Australian Building and Construction Commissioner v Construction, Forestry, Mining and Energy Union [2017] FCAFC 113; (2017) 254 FCR 68
Australian Building and Construction Commissioner v Construction, Forestry, Mining and Energy Union [2018] HCA 3; (2018) 262 CLR 157
Australian Building and Construction Commissioner v Pattinson [2022] HCA 13; (2022) 274 CLR 450
Australian Softwood Forest Pty Ltd v Attorney-General (NSW) (Ex Rel Corporate Affairs Commission) (1981) 148 CLR 121
Commonwealth v Director, Fair Work Building Industry Inspectorate [2015] HCA 46; (2015) 258 CLR 482
NW Frozen Foods Pty Ltd v ACCC [1996] FCA 1134; (1996) 71 FCR 285
Paciocco v Australia and New Zealand Banking Group Ltd [2015] FCAFC 50; (2015) 236 FCR 199
Productivity Partners v ACCC [2024] HCA 27; (2024) 419 ALR 30
Singtel Optus Pty Ltd v ACCC [2012] FCAFC 20
Stubbings v Jams 2 Pty Ltd [2022] HCA 6; (2022) 276 CLR 1
Tonto Home Loans Australia Pty Ltd v Tavares[2011] NSWCA 389; (2011) 15 BPR 29
Trade Practices Commission v CSR Ltd [1990] FCA 521; [1991] ATPR 41-076
Viagogo AG v ACCC [2022] FCAFC 87
Volkswagon Aktiengesellschaft v ACCC [2021] FCAFC 49; (2021) 284 FCR 2
Division: General Division Registry: South Australia National Practice Area: Commercial and Corporations Sub-area: Regulator and Consumer Protection Number of paragraphs: 163 Date of hearing: 2 September 2025 Counsel for the Applicant: Mr T Duggan KC with Mr T Goodwin with Ms M Hamlyn Solicitor for the Applicant: Australian Government Solicitors Counsel for the Respondent: Mr S Finch SC with Ms A Campbell Solicitor for the Respondent: Herbert Smith Freehills Kramer ORDERS
SAD 229 of 2024 BETWEEN: AUSTRALIAN COMPETITION AND CONSUMER COMISSION
ApplicantAND: OPTUS MOBILE PTY LIMITED ACN 054 365 696
Respondent
ORDER MADE BY:
O’SULLIVAN J
DATE OF ORDER:
24 SEPTEMBER 2025
PENAL NOTICE
TO: OPTUS MOBILE PTY LTD
IF YOU (BEING THE PERSON BOUND BY THIS ORDER):
(A) REFUSE OR NEGLECT TO DO ANY ACT WITHIN THE TIME SPECIFIED IN THIS ORDER FOR THE DOING OF THE ACT; OR
(B) DISOBEY THE ORDER BY DOING AN ACT WHICH THE ORDER REQUIRES YOU NOT TO DO,
YOU WILL BE LIABLE TO IMPRISONMENT, SEQUESTRATION OF PROPERTY OR OTHER PUNISHMENT.
ANY OTHER PERSON WHO KNOWS OF THIS ORDER AND DOES ANYTHING WHICH HELPS OR PERMITS YOU TO BREACH THE TERMS OF THIS ORDER MAY BE SIMILARLY PUNISHED.
THE COURT NOTES THAT:
1.Optus has given an undertaking pursuant to s 87B of the Competition and Consumer Act 2010 (Cth) which was accepted by the Australian Competition and Consumer Commission on 17 June 2025 and is attached at annexure A to these orders.
THE COURT DECLARES BY CONSENT THAT:
Inappropriate Sales Conduct
1.Pursuant to s 21 of the Federal Court of Australia Act 1976 (Cth) (FCA Act):
(a)Between 8 January 2019 and 12 September 2023, the Respondent, Optus Mobile Pty Ltd (Optus), through its employees or agents, sold telecommunications and associated goods and services to 24 consumers (Consumers).
(b)At the relevant time of sale, Optus knew or ought to have known that the Consumers, many of whom were First Nations persons from remote communities, were experiencing various types of vulnerability or disadvantage.
(c)The sale of the goods and services to the Consumers by Optus involved conduct including one or more of the following:
(i)subjecting the Consumer to undue pressure or influence, inducing those Consumers to purchase goods and services (in a number of cases, a large number of goods and services) that the Consumers often did not want, did not need and/or could not afford;
(ii)failing to explain the terms and conditions of the contracts for sale to the Consumer in a manner that those consumers could understand, with the result that they did not understand their ongoing payment obligations;
(iii)selling the Consumer goods and services they did not want, need or could not use, including multiple instances where Optus Staff did not have regard to whether they had Optus coverage where they lived, and sold them goods and services that they would not be able to use where they lived because of the lack of Optus coverage;
(iv)selling the Consumer goods and services on credit where Optus knew or ought reasonably to have been aware they could not afford those goods and services, including because Optus Staff manipulated or bypassed credit controls in order to gain approval to sell goods and services to the Consumer for a higher amount of money than the Consumer would otherwise be approved to purchase; and
(v)misleading the Consumer to erroneously believe that particular goods were “free” or included or part of a bundle at no additional cost;
(the Inappropriate Point of Sale Conduct).
(d)Following the sale of the goods and services to the Consumers, in respect of certain Consumers, Optus pursued debt collection activities, including by retaining debt collection agencies to collect the alleged debts and assigning the alleged debts to third parties, in circumstances where Optus knew or reasonably ought to have known that it had engaged, or likely had engaged, in the Inappropriate Point of Sale Conduct (the Inappropriate Debt Collection Conduct).
(e)The Inappropriate Point of Sale Conduct and Inappropriate Debt Collection Conduct (together the Inappropriate Sales Conduct) occurred in circumstances where Optus was aware, or ought to have become increasingly aware, that:
(i)its existing systems and controls were deficient to avoid or prevent the Inappropriate Sales Conduct; and
(ii)there were deficiencies in how Optus dealt with vulnerable consumers, including because Optus did not have a holistic vulnerable consumer strategy as at July 2021.
(f)By engaging in the Inappropriate Sales Conduct, Optus engaged in 24 instances of conduct that was, in each case, in all the circumstances, unconscionable in contravention of s 21 of the Australian Consumer Law (ACL), which is contained in Schedule 2 of the Competition and Consumer Act 2010 (Cth) (CCA).
Inappropriate Mount Isa Conduct
2.Pursuant to s 21 of the FCA Act:
(a)From at least February 2020, in circumstances where Optus senior management was aware of findings of an internal investigation that 82 contracts in relation to 46 consumers appeared to have been entered into at the Optus Mount Isa Store fraudulently without the relevant consumer’s knowledge, Optus did one or more of the following:
(i)referred outstanding debts associated with those contracts to third party debt collection agencies;
(ii)sold outstanding debts associated with those contracts to a third party factoring agency; and
(iii)affected up to 39 consumers by subjecting 42 of the affected consumer accounts to debt collection activities by third party debt collections agencies and third party factoring agencies, and subjecting 40 of those consumer accounts to certain conduct by the third party debt collection agencies or factoring agencies, for example, some consumer accounts had defaults listed against them with credit reporting bodies,
(the Inappropriate Mount Isa Conduct).
(b)By engaging in the Inappropriate Mount Isa Conduct, in all of the circumstances, Optus engaged in contraventions of s 21 of the ACL as part of a pattern of behaviour of unconscionable conduct.
Inappropriate Darwin Conduct
3.Pursuant to s 21 of the FCA Act:
(a)Between June 2021 and July 2023, Optus, through its sales agents at the Optus Casuarina Store and Optus Palmerston Gateway Store (collectively, the Optus Darwin Stores), in connection with the supply or possible supply of telecommunications and associated goods and services to consumers:
(i)manipulated or bypassed credit controls in order to gain approval to sell goods and services to the consumer for a higher amount of credit than the consumer would otherwise be approved to purchase;
(ii)oversold and overpriced accessories, including at an amount above the recommended retail price; and
(iii)sold services and devices to consumers without having regard to whether the consumers had coverage where they lived,
(the Darwin Inappropriate Selling Conduct).
(b)The store managers and assistant store managers engaged in and taught and/or directed junior staff to engage in the Darwin Inappropriate Selling Conduct and it affected at least 363 consumer accounts (Darwin Consumers).
(c)Some of the Darwin Consumers were First Nations persons, lived in remote communities and/or were experiencing various types of vulnerability or disadvantage.
(d)The Darwin Inappropriate Selling Conduct occurred in circumstances where Optus was aware or ought to have become increasingly aware that:
(i)its existing procedures and controls were deficient to avoid or prevent the Darwin Inappropriate Selling Conduct; and
(ii)there were deficiencies in how Optus dealt with vulnerable consumers, including because Optus did not have a holistic vulnerable consumer strategy as at July 2021.
(e)By engaging in the Darwin Inappropriate Selling Conduct, in all of the circumstances, Optus engaged in contraventions of s 21 of the ACL as part of a pattern of behaviour of unconscionable conduct.
False or Misleading Representations
4.Pursuant to s 21 of the FCA Act, Optus made false or misleading representations to 4 of the Consumers with respect to the price of goods and services in contravention of ss 18 and 29(1)(i) of the ACL.
Penalty and Publication
5.Pursuant to s 224(1) of the ACL, within 30 days of the date of this Order, Optus pay to the Commonwealth of Australia a pecuniary penalty in the amount of $100 million for the contraventions of s 21 of the ACL referred to in paragraphs 1 to 3 above, and the contravention of s 29(1)(i) of the ACL referred to in paragraph 4 above.
6.Pursuant to s 246(1) of the ACL, and s 23 of the FCA Act, that Optus at its own expense, within 30 days of the date of the order of the Court:
(a)publish or cause to be published in a prominent manner at the top of the Optus homepage at (or if the URL of the Optus homepage is replaced or changed, the corresponding webpage) for a continuous period of 14 days;
(b)publish or cause to be published a post on Optus’s Facebook, Instagram and X social media feeds, where the post will remain in the feed for a period of at least 30 days;
(c)make all reasonable endeavours to cause to be prominently displayed in each Optus-branded retail store at which telecommunications-related goods and/or services are sold by or on behalf of Optus for a continuous period of 60 days; and
(d)publish or cause to be published in The Senior Magazine, the National Indigenous Times, the Koori Mail and a major daily newspaper in each State and Territory, the corrective notice at Annexure B to these orders. In the case of (a) and (b) Optus may publish a summary of the corrective notice provided that the summary contains a link to the full corrective notice, or as otherwise agreed by the parties. In the case of (d), for those publications which are monthly, Optus is to make reasonable endeavours to publish or cause to be published in the next issue, or if that is not feasible, in the issue following (even if that is after 30 days from the date of the order of the Court), the corrective notice at Annexure B to these orders.
7.Pursuant to ss 37AF and 37AG(1)(a) of the FCA Act, on the ground that it is necessary to prevent prejudice to the proper administration of justice, Schedule 2 and Schedule 4 to the s 87B undertaking shall be and remain marked “Confidential” on the electronic court file and shall not be published or otherwise disclosed or made available to anyone other than the parties to this proceeding and the staff of the Court in their performance of their duties.
8.Pursuant to s 43 of the FCA Act, within 30 days of the date of this order, Optus pay the Australian Competition and Consumer Commission’s costs of and incidental to this proceeding fixed in the amount of $1.5 million.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
ANNEXURE A – UNDERTAKING
Undertaking to the Australian Competition and Consumer Commission
Given under section 87B of the Competition and Consumer Act 2010 (Cth) by Optus Mobile Pty Ltd (ACN 054 365 696)1 Person giving the undertaking
1.1This undertaking is given to the Australian Competition and Consumer Commission (ACCC) by Optus Mobile Pty Limited ACN 054 365 696 (Optus) for the purposes of section 87B of the Competition and Consumer Act 2010 (Cth) (CCA) (the Undertaking).
2 Background
Description of Optus2.1Optus is a private company incorporated in Australia under the Corporations Act 2001 (Cth) and is a wholly owned subsidiary of Singtel Optus Pty Ltd (Singtel Optus). Optus is Australia’s second largest provider of telephony and data services for mobile telephones and tablets.
Products and services offered by Optus
2.2Between August 2019 and July 2023 (Relevant Period) Optus offered a variety of telecommunication products and services to members of the public, including:
(a)products: including mobile phone handsets and associated accessories (such as headphones, speakers, chargers and phone cases), other accessories (such as some wearables including smart watch accessories), SIM cards, modems and hardware; and
(b)services: including pre-paid or postpaid mobile telecommunication services, mobile broadband services, content services, and value-added services (such as device warranty services).
(together, the Optus Products and Services)
2.3Optus licensees were authorised by Optus to act as its agent in respect of the promotion, sale and supply of the Optus Products and Services to members of the public.
Operation of stores – owned and licensed
2.4During the Relevant Period, Optus supplied the Optus Products and Services through retail stores owned and operated by Optus Retail Co Pty Limited (Optus Operated Stores) and retail stores operated by Optus licensees (Optus Licensee Stores) (together, Optus Retail Stores). For the purposes of this Undertaking, Optus Retail Stores does not include stores operated by Optus partners (e.g. Harvey Norman) or Optus Business Centres. This Undertaking does not apply to genuine business sales made at Optus Retail Stores.
2.5Optus also sells products and services through its Optus contact centres (Optus Contact Centres) and its online (self-serve) sales (Digital Channel). Staff members employed at Optus Retail Stores and/or Optus Contact Centres are referred to as Optus Sales Staff.
3 Court proceedings and admissions
3.1The ACCC instituted proceedings in the Federal Court of Australia against Optus on 31 October 2024 (the Proceedings). In the Proceedings, the ACCC alleged that, in the Relevant Period, Optus engaged in unconscionable conduct in contravention of section 21 of the Australian Consumer Law (ACL) at Schedule 2 of the CCA, including in relation to consumers who were vulnerable or experiencing disadvantage (Vulnerable Consumers). The conduct occurred in connection with sales of products and services to 24 vulnerable consumers (24 Vulnerable Consumers) and also in connection with sales of products and services to consumers at Optus Retail Stores in Darwin and Mount Isa.
3.2The Proceedings concern inappropriate sales conduct engaged in by Optus Sales Staff at 16 Optus Retail Stores during the Relevant Period, when Optus Sales Staff entered into contracts on Optus’s behalf with the affected consumers pursuant to which Optus supplied post-paid mobile products and services to the affected consumers. The conduct exploited the Vulnerable Consumers, whose vulnerabilities or disadvantages variously included living with mental disability or diminished cognitive capacity, being unemployed, being financially dependent and indigent, English not being a first language, having limited financial literacy, and/or living with learning and comprehension difficulties. A number of the Vulnerable Consumers were First Nations Australians from regional, remote and very remote parts of Australia.
3.3By way of example, the inappropriate sales conduct included instances whereby Optus Sales Staff:
(a)subjected the Vulnerable Consumers to undue pressure or influence, inducing those consumers to purchase a large number of products and services that the consumers often did not want, did not need and/or could not afford;
(b)failed to explain the terms and conditions of the contracts for sale to the Vulnerable Consumers in a manner that those consumers could understand, with the result that the Vulnerable Consumers did not understand their ongoing payment obligations;
(c)sold the Vulnerable Consumers products and services that they did not want or could not use, including multiple instances where Optus Sales Staff did not have regard to whether the Vulnerable Consumers had Optus coverage where they lived, and sold Vulnerable Consumers goods and services that they would not be able to use where they lived because of the lack of Optus coverage;
(d)sold the Vulnerable Consumers products and services Optus knew or ought reasonably to have been aware the Vulnerable Consumer could not afford following a credit check; and
(e)misled the Vulnerable Consumers to erroneously believe that particular products were “free” or included as part of a bundle at no additional cost,
(Improper Sales Conduct).
3.4In some cases, despite knowing about the inappropriate sales conduct and that the conduct was subject to ongoing internal and external investigations, Optus pursued debt collection activities in respect of the Vulnerable Consumers, including by referring and selling their debts to third party debt collection agencies.
3.5In respect of one store (the Optus Mount Isa Store), Optus pursued debt collection activities in circumstances where Optus’s senior management knew that those debts related to contracts for products and services that had been or might have been created by Optus Licensee Staff without the knowledge of the affected consumers. Optus’s senior management was aware that the majority of affected consumers were First Nations Australians from Mount Isa and the Northern Territory.
3.6The inappropriate sales conduct took place in circumstances in which Optus’s senior management became increasingly aware, or ought to have become increasingly aware, that Optus Sales Staff were engaging in the inappropriate sales conduct, that its existing systems and controls were deficient to avoid or prevent that conduct, and that there were deficiencies in how Optus dealt with Vulnerable Consumers, including because Optus did not have a holistic Vulnerable Consumer strategy as at July 2021.
3.7When the instances of inappropriate sales conduct were brought to the attention of those involved in Optus’s complaints handling functions and, in some cases, Optus’s senior management, Optus generally failed to fully remediate the conduct for long periods of time, sometimes not until the matters were referred to the Telecommunications Industry Ombudsman (TIO) for resolution. In addition, Optus failed to promptly take steps to fix the deficiencies in its systems, which allowed the conduct to continue to occur.
3.8The commission-based remuneration structures adopted and endorsed by Optus had the potential to incentivise inappropriate sales conduct, in circumstances where the best practice recommendations to which Optus was required to have regard from 17 June 2022 recommended that business practices be reviewed to avoid conflicted remuneration policies due to the capacity of commission-based selling to create, exacerbate, or exploit the vulnerability of consumers.
3.9As a result of the unconscionable conduct, many of the Vulnerable Consumers suffered (i) financial harm, incurring thousands of dollars of debt whilst in many cases only receiving modest or extremely modest income; and (ii) non-financial harm, including shame, embarrassment, stress and emotional distress over how they would pay their debts to Optus. Being pursued by debt collectors caused distress and fear for at least some of the Vulnerable Consumers and the listing of defaults affected their credit scores and may have affected their ability to obtain other lines of credit and services.
3.10Further, it was only through the very significant time, effort and emotional stress expended by the carers, advocates and/or financial counsellors who supported the Vulnerable Consumers (specifically the 24 Vulnerable Consumers) that some of those consumers were able to realise any resolution to Optus’s conduct.
3.11Since the conduct occurred, Optus has taken steps to remediate affected consumers. This has included refunding amounts paid by affected consumers (with interest), waiving outstanding debts and removing default credit listings. Optus has taken a significant number of steps, and is committing in this Undertaking to take further steps, to reduce the risk of similar conduct from occurring in the future. Nonetheless, Optus recognises that the nature and impact of the conduct that impacted the affected consumers was extremely serious. Further, Optus’s systems did not prevent the conduct from taking place in circumstances where Optus’s senior management became increasingly aware of those deficiencies and Optus failed to act quickly enough to address the conduct, resulting in consumers suffering detriment.
4 Agreed resolution
4.1Optus and the ACCC have agreed to resolve the Proceedings with Optus making admissions including those outlined in paragraphs 3.1 to 3.11 above. Optus and the ACCC will also make joint submissions in support of relief orders to be sought from the Court in connection with the Proceedings, including declarations, penalties, costs, a publication order and corrective notice.
4.2As part of the resolution of the Proceedings, Optus has offered this Undertaking to the ACCC.
5 Commencement of the Undertaking
5.1 This Undertaking comes into effect when all of the following have occurred:
(a) this Undertaking is executed by Optus;
(b) this Undertaking so executed is accepted by the ACCC; and
(c) the Court makes final orders in respect of the Proceedings,
(the Commencement Date).5.2Unless otherwise stated, this Undertaking has effect for 5 years after the Commencement Date (the Term).
5.3Upon the Commencement Date, Optus undertakes to assume the obligations set out in paragraphs 6 to 7 below for the purposes of section 87B of the CCA.
6 Undertakings
Sales processes and practices6.1Optus has established a program of work which involves review and improvement of its sales processes and practices and their compliance with the ACL. Optus will also implement improvements to its complaints handling process for consumers experiencing vulnerability and/or disadvantage and its practices for the referral of consumers to debt collection.
6.2 Optus undertakes:
(a)in relation to the steps outlined in paragraph 6.3 which do not require a change to Optus’s IT systems (Process Changes), to take the steps as soon as reasonably practicable and, in any event, within 6 months from the Commencement Date; and
(b)in relation to the steps outlined in paragraph 6.3 which require a change to Optus’s IT systems (System Changes), to:
(1)as soon as reasonably practicable and, in any event, within 6 months from the Commencement Date, implement new training and processes which will seek to prevent any improper sales practices occurring whilst the relevant System Change(s) is being developed; and
(2)within two years from the Commencement Date, implement the relevant System Changes required; and
(c)in relation to other steps outlined in paragraph 6.3, to take those steps within the stated time.
6.3Optus undertakes that it has taken or will take the following steps in relation to sales transactions of post-paid mobile plan(s) with a pay over time device or accessory:
(a)In relation to credit check failures, Optus will implement System Changes which prevent Optus Sales Staff in Optus Retail Stores and Optus Contact Centres from:
(1)changing contact details on retail consumer accounts where an order is still being processed after a credit check;
(2)in addition to the initial order, submitting one or more additional orders for the same account after a credit assessment has been performed on an existing open order for the purpose of increasing the value approved; and
(3)adding new products or services to an order where Optus Sales Staff have obtained credit approval but prior to that order being fully submitted which cause the order to exceed the value approved at the time of the credit check.
(b)In relation to the sale of accessories Optus will implement System Changes to Optus Retail Stores, Optus Contact Centres and the Digital Channel which will:
(1)prevent the sale of accessories by Optus Sales Staff above the recommended retail price (RRP) set by Optus; and
(2)provide a full breakdown of the accessories purchased in all consumer contracts and invoices.
(c)In relation to coverage checks for sales involving a mobile service, Optus will:
(1) implement the following System Changes:
(A)in relation to new retail mobile services sold in an Optus Retail Store or an Optus Contact Centre to (i) new customers; and (ii) existing customers that have not had a mobile service, it will be mandatory for Optus Sales Staff to conduct coverage checks at the point of sale (based on the residential address provided by the consumer) and to provide the results of those coverage checks to the consumer;
(B)in relation to all new retail mobile sales falling within sub-paragraph 6.3(c)(1)(A) above and retail mobile sales to (i) new customers; and (ii) existing customers that have not had a mobile service in a Digital Channel, it will be mandatory for consumers to acknowledge that they have either (i) viewed and considered the coverage information before committing to a sale; or (ii) been provided with an opportunity to view and consider the coverage information before committing to a sale;
(C)in relation to all sales falling within sub-paragraph 6.3(c)(1)(A) and (B) above, it will be mandatory for Optus to keep a record of all consumer acknowledgements to the presentation of information from coverage checks in accordance with applicable data retention laws; and
(2)in relation to Optus Retail Stores, implement the Process Change of providing monthly reporting to the governance forum as described at Schedule 1, paragraph 8.2 on whether Optus Sales Staff had conducted coverage checks or shown the consumer a coverage map at the point of sale, based on data obtained through Optus’s mystery shopper program.
(d)In relation to debt collection activities, Optus will maintain for the Term the following Process Changes:
(1)pause all debt collection activities in relation to transactions which (i) are subject of a report to Optus’s Quality Control team (including transactions referred to Optus’s Quality Control team by Optus’s Fraud Risk Management team) or any other team with responsibility for investigating alleged improper sales practices; and (ii) have been identified as requiring further validation based on the presence of indicators related to likely improper sales practices, no later than 72 hours from identification until such time as an assessment of the identified transactions has been completed by the relevant team and no such improper sales practices have been identified; and
(2)For the avoidance of doubt, paragraph 6.3(d)(1) does not apply to the potentially affected customers identified by Optus in the Proactive Reviews (see Confidential Schedule 2, paragraphs 10 and 11). However, in accordance with Confidential Schedule 2 paragraph 38, once a consumer has been assessed as being eligible for remediation, Optus will cease all debt collection activities related to a transaction affected by improper sales practices.
(3)where Optus pauses debt collection activities in relation to a consumer pursuant to paragraph 6.3(d)(1), Optus will also, as soon as reasonably practicable, review any other transactions undertaken by the relevant salesperson to assess if there are other transactions that may have been affected by similar improper sales practices.
(e) In relation to the detection of improper sales practices, Optus will:
(1)for the duration of the Term, ensure that a member of its Quality Control team:
(A)conducts an in-person visit at each Optus Retail Store in regional North Queensland (being stores north of Bundaberg), Western Australia and South Australia at least 3 times per year for the first 3 years of the Term (a ‘year’ being each 12 month period from the Commencement Date). If the relevant store passes every review within the 3 years, for the last 2 years of the Term, Optus will conduct an in-person visit at least 2 times per year; and
(B)conducts an in-person visit at every Optus Licensee Store not referred to in paragraph 6.3(e)(1)(A) at least 2 times per year,
and conducts a quality assurance review directed at detecting improper sales practices and risks of improper sales practices; and
(2) for the duration of the Term maintain, in relation to Optus Retail Stores:
(A)a risk identification model to identify high risk sales requiring further investigation based on multiple criteria including adherence to multi factor authentication (MFA) requirements, use of Digital ID, recording of e-signature, customer usage, customer churn and number of services purchased based on customer profile; and
(B)monthly retail compliance meetings to review risk metric reporting and risk decision model and identify areas for improvement to be actioned by relevant Optus managers and executives.
(3)by no later than 6 months from the Commencement Date, Optus will implement and maintain for the remainder of the Term, in relation to Optus Contact Centres:
(A)a risk identification model to identify high risk sales requiring further investigation based on multiple criteria including adherence to MFA requirements, use of Digital ID, recording of e-signature, customer usage, customer churn and number of services purchased based on customer profile; and
(B)monthly retail compliance meetings to review risk metric reporting and risk decision model and identify areas for improvement to be actioned by relevant Optus managers and executives.
(f)In relation to the handling of Vulnerable Consumers, by no later than:
(1)6 months from the Commencement Date, Optus will, in relation to Optus Retail Stores and Optus Contact Centres:
(A)take all reasonable steps to ensure Optus Sales Staff are trained: (i) to identify potentially Vulnerable Consumers; and (ii) on the circumstances in which Optus Sales Staff are required to refer such consumers to Optus’s Specialist Care Team for assistance;
(B)incorporate an identifier in its customer relationship management system to identify accounts identified to Optus as subject to management by public trustee or guardianship orders; and
(C)implement training and processes which seek to ensure that consumers who are known by Optus to be subject to management by public trustee or guardianship orders, are directed to Optus’s Specialist Care Team for management of sales transactions; and
(2)18 months from the Commencement Date, Optus will, in relation to Optus Retail Stores and Optus Contact Centres, amend its credit decisioning processes to take into account the existence of the identifier referred to in paragraph 6.3(f)(1)(B) during the processing and placement of new orders.
6.4Without limiting paragraph 6.3, Optus undertakes to, for sales transactions of post-paid mobile plan(s) with a pay over time device or accessory:
(a)in relation to Optus Retail Stores and Optus Contact Centres during the Term, check that ABNs are registered at the following points in time:
(1)at the point of sale of a credit product (through the credit check process);
(2)for any subsequent sales of a credit product, every six months following the initial check outlined in paragraph 6.4(a)(1);
(b)by no later than 6 months from the Commencement Date, where a consumer has registered with Optus (either directly or through the TIO) a complaint of improper sales practices in relation to a product or service, pause debt collection activities within 72 hours of the complaint being referred to the Billing and Credit Collections team until that registered complaint has been considered and/or addressed in accordance with the Remediation Program set out in Confidential Schedule 2 or has been closed within the meaning of the Telecommunications (Consumer Complaints Handling) Industry Standard 2018 (as amended from time to time);
(c)in relation to Optus Retail Stores, Optus Contact Centres and the Digital Channel by no later than 6 months from the Commencement Date, include in its credit check process for the following transactions:
(1) post-paid plan(s) with a pay over time device or accessory;
(2) subscription plan(s) with a pay over time device or accessory; and
(3) fixed plans(s) with a device and contract term of more than 1 month;
a question for new retail customers in Optus Retail Stores and Optus Contact Centres to ascertain the customer’s primary source of income as part of the credit check process; and
(d) in relation to Optus Retail Stores and Optus Contact Centres, by no later than 18 months from the Commencement Date, include in its credit check process for existing customers whose most recent inquiry about source of income occurred more than 12 months prior and who are seeking to acquire:
(1) post-paid plan(s) with a pay over time device or accessory;
(2) subscription plan(s) with a pay over time device or accessory; and
(3)fixed plan(s) with a device and contract term of more than 1 month,
a question to ascertain the customer’s primary source of income as part of the credit check process.
Remuneration and incentives
6.5Optus will implement and maintain all changes set out in paragraph 6.6 below that are designed to incentivise Optus Sales Staff to comply with the ACL in all aspects of Optus’s selling practices.
6.6Without limiting paragraph 6.5, Optus will, by no later than 6 months from the Commencement Date and for the remaining duration of the Term, ensure that any remuneration and incentives for Optus Sales Staff (including staff with direct management responsibilities for other Optus Sales Staff) at an Optus Operated Store are consistent with the Telecommunications Consumer Protections Code (TCP Code) (as amended from time to time) and subject to the following conditions:
(a)customer service and compliance gateways must be met by the relevant Optus Operated Store each month before any commission is payable to a salesperson in respect of that month. These customer service and compliance gateways must appropriately reward positive consumer interactions and compliance with key quality control metrics, which will incentivise good sales practices;
(b)for Optus Sales Staff employed at Optus Operated Stores located in the Northern Territory, any incentives payable will be based solely on customer service and compliance gateways;
(c)total commissions payable to a salesperson in any period must be no more than 150% of the salesperson’s variable target for that period (which is 15% of the salesperson’s base pay);
(d)payment of sales based related commissions (whether volume or revenue related) will be deferred for 3 months from the date of the applicable sale;
(e)if Optus, in investigating any conduct of a salesperson, identifies that there is evidence that a salesperson has engaged in improper sales practices, including any Improper Sales Conduct, Optus must withhold an amount equal to 3 times the total commission for the affected transaction from any future commissions otherwise payable to that salesperson. The withheld amount must not be released until the Compliance Officer (or its delegate) determines that the salesperson did not engage in the alleged conduct. For the purposes of this paragraph, an investigation includes reviews undertaken by the Quality Control team, reviews resulting from a TIO complaint and reviews resulting from a customer complaint;
(f)if a salesperson is determined by the Compliance Officer (or its delegate) to have engaged in improper sales practices, including any Improper Sales Conduct, Optus must deduct an amount equal to 3 times the total commission payable to the salesperson in relation to the affected transaction from any future commissions otherwise payable to that salesperson;
(g)sub-paragraphs (d), (e) and (f) do not apply to the stores listed in Schedule 3 for the first 6 months of the Term; and
(h)any commission and incentive arrangements available to Optus Sales Staff for postpaid mobile activations will not differentiate between categories of retail customers (e.g. individuals and customers with ABNs).
6.7Without limiting paragraphs 6.5 and 6.6, Optus will, by no later than 6 months from the Commencement Date and for the remaining duration of the Term, ensure that any remuneration and incentives for staff with direct management responsibilities for Optus Sales Staff at an Optus Operated Store are subject to the following condition:
(a)if a salesperson is determined by the Compliance Officer (or its delegate) to have engaged in improper sales practices, including any of Improper Sales Conduct, Optus must deduct an amount equal to 3 times the total commission payable to the salesperson in relation to the affected transaction from any future commissions otherwise payable to the staff member(s) with direct management responsibility for that salesperson at the time of the conduct (the on duty manager) (Supervising Manager).
6.8For the avoidance of doubt, paragraphs 6.6 and 6.7 above and 6.9 and 6.10 below:
(a)do not require Optus to seek repayment of any commissions in circumstances where the relevant salesperson or Supervising Manager is no longer employed by Optus and there are no outstanding commissions otherwise payable; and
(b)only apply to the extent they are consistent with applicable labour and employment laws in the relevant jurisdictions, including the Fair Work Act 2009 (Cth) and any enterprise agreements entered into by Optus under those laws.
6.9Optus undertakes that in relation to its Optus Contact Centres which are owned and operated by Optus:
(a)if any sales staff at an Optus Contact Centre is the subject of an investigation and the investigation identifies that there is evidence that the salesperson has engaged in improper sales practices, including any Improper Sales Conduct, the Optus Contact Centre must withhold an amount equal to 3 times the total commission for the affected transaction from any future commissions otherwise payable to that salesperson. The withheld amount must not be released until the Compliance Officer (or its delegate) determines that the salesperson did not engage in the alleged conduct. For the purposes of this paragraph, an investigation includes reviews undertaken by the Quality Control team, reviews resulting from a TIO complaint and reviews resulting from a customer complaint;
(b)if any sales staff at an Optus Contact Centre is determined by the Compliance Officer (or its delegate) to have engaged in improper sales practices, including any Improper Sales Conduct, the Optus Contact Centre must deduct an amount equal to 3 times the total commission payable to the salesperson in relation to the affected transaction from any future commissions otherwise payable to that salesperson; and
(c)if any sales staff at an Optus Contact Centre is determined by the Compliance Officer (or its delegate) to have engaged in improper sales practices, including any Improper Sales Conduct, the amount of any commissions payable to the operator of that Optus Contact Centre during the following commission period will be reduced by an amount equal to 3 times the total commission for the affected transaction.
6.10Optus undertakes that each agreement relating to the operation of an Optus Licensee Store and an Optus Contact Centre which are operated by a third party (Partner Contact Centre) will provide that:
(a)if any Optus Sales Staff at that Optus Licensee Store or Partner Contact Centre is the subject of an investigation and the investigation identifies that there is evidence that the salesperson has engaged in improper sales practices, including any Improper Sales Conduct, the Optus Licensee Store or the Partner Contact Centre must withhold an amount equal to 3 times the total commission for the affected transaction from any future commissions otherwise payable to that salesperson. The withheld amount must not be released until the Compliance Officer (or its delegate) determines that the salesperson did not engage in the alleged conduct. For the purposes of this paragraph, an investigation includes reviews undertaken by the Quality Control team, reviews resulting from a TIO complaint and reviews resulting from a customer complaint;
(b)if any Optus Sales Staff at that Optus Licensee Store or Partner Contact Centre is determined by the Compliance Officer (or its delegate) to have engaged in improper sales practices, including any Improper Sales Conduct, the Optus Licensee Store or the Partner Contact Centre must deduct an amount equal to 3 times the total commission payable to the salesperson in relation to the affected transaction from any future commissions otherwise payable to that salesperson; and
(c)if any Optus Sales Staff at that Optus Licensee Store or Partner Contact Centre is determined by the Compliance Officer (or its delegate) to have engaged in improper sales practices, including any Improper Sales Conduct, the amount of any commissions payable to the operator of that Optus Licensee Store or Partner Contact Centre during the following commission period will be reduced by an amount equal to 3 times the total commission for the affected transaction.
The undertaking in this paragraph applies:
(d) in respect of any existing agreement that allows Optus to amend the agreement to include such a provision, by no later than 6 months of the Commencement Date, subject to any consultation periods as required by applicable laws; and
(e)in respect of any agreement created or renewed after the Commencement Date, from the date of that agreement.
6.11Within 6 months of the Commencement Date, Optus will establish a Sales and Commissions Governance Committee with decision-making delegation independent of customer facing business teams which will meet monthly to oversee and control the development of sales incentive and commission plans and monitor and resolve any concerns about reward structures being misaligned with ACL compliance.
Purchase of Certain Optus Licensee Stores
6.12 Optus undertakes that it will ensure:(a)subject to obtaining the consent of the relevant landlord and Optus’s lawful obligations, each Optus Licensee Store listed in Schedule 3 is directly operated by Optus or its related bodies corporate by no later than August 2025; and
(b)each such store is not operated by any person other than Optus or its related bodies corporate for the duration of the Term.
Appointments
6.13 Optus undertakes to:(a)as soon as reasonably practicable appoint an appropriately qualified compliance officer at the senior executive level who will report directly to Optus’s Chief Executive Officer regarding matters relating to the Undertaking and who is otherwise responsible for identifying and addressing potential ACL compliance risks, regardless of the business unit in which the risk arises (Compliance Officer). If the role of Compliance Officer subsequently becomes vacant at any time during the Term, Optus undertakes to appoint a new Compliance Officer as soon as reasonably practicable;
(b)direct the Compliance Officer to report directly to the Singtel Optus Board at least twice per year in relation to any ACL compliance risks identified and the measures taken to address those risks, including any responses taken to recommendations made by the Compliance Auditor (see paragraph 7.6(e)); and
(c)provide a copy of the monthly reporting to the governance forum (as described at Schedule 1, paragraph 8.2) to the Compliance Officer on whether Optus Sales Staff have conducted coverage checks at the point of sale, based on data obtained through Optus’s mystery shopper program.
Compliance Program
6.14Optus has in place a Compliance Program in respect of the CCA, the object of which is to ensure compliance with the CCA by Optus and relevant officers and employees (Compliance Program).
6.15 Optus undertakes, at its own expense, to:
(a)review and amend as necessary its Compliance Program by no later than 12 months after the Commencement Date to ensure that the Compliance Program meets the requirements set out in Schedule 1 (Updated Compliance Program Requirements); and
(b)maintain and continue to implement the Compliance Program for the Term of this Undertaking.
Remediation Program
6.16For a period of 3 years from the Commencement Date (the Remediation Period), Optus undertakes to provide remediation to additional consumers as set out in Confidential Schedule 2 (Remediation Program). The intended purpose of the Remediation Program is to ensure prompt and fair remediation for all cases of improper sales practices by fully assessing identified claims, issuing apologies, and addressing additional claims through a clear resolution process.
6.17Optus undertakes to keep in relation to the Remediation Program, for the duration of the Remediation Period, a record of the number of consumer complaints assessed by Optus, the remediation determined for each of those consumers and the response time for each consumer. Optus undertakes that it will provide this data to the ACCC on request.
6.18Optus undertakes that it will, by no later than 6 months from the Commencement Date, donate the sum of $1 million to an organisation facilitating digital literacy of First Nations Australians as proposed by Optus and not opposed by the ACCC.
7 Audit
Compliance Auditor
7.1 Optus undertakes that:(a)within 3 months of the Commencement Date, it will appoint a suitably qualified independent auditor to conduct the audit of Optus’s compliance with this Undertaking (Compliance Auditor), and
(b)for the duration of the Term, it will ensure it complies, and will take all reasonable steps to ensure the Compliance Auditor complies with paragraphs 7.3 to 7.6 below.
7.2 The Compliance Auditor will qualify as independent on the basis that the person:
(a)did not design, implement or manage the portal used to give effect to the Remediation Program, including eligibility assessment and collection of payment information for payment of remediation;
(b)is not a present or past staff member or director of Optus or its related bodies corporate;
(c)has not acted and does not act for, and does not consult and has not consulted to Optus, unless agreed by the ACCC; and
(d)has no significant shareholding or other interests in Optus or its related bodies corporate.
7.3Optus will engage the Compliance Auditor, and will ensure the terms of appointment for the Compliance Auditor include obligations on the Compliance Auditor, to:
(a) audit:
(1)Optus’s compliance with this Undertaking, including whether Optus’s compliance program meets the Updated Compliance Program Requirements, whether Optus has implemented its obligations in relation to remuneration and incentives and whether Optus is complying with the Remediation Program;
(2)all Optus Retail Stores for the purposes of identifying instances of improper sales practices and/or risks of improper sales practices, including whether Optus’s processes and procedures mitigate the risk of the types of Improper Sales Conduct listed in paragraph 3.3 above, and
(3)Optus’s handling and resolution of complaints by or on behalf of consumers for the purposes of identifying any failures or weaknesses in the complaints handling process for Vulnerable Consumers and instances of referral of Vulnerable Consumers to debt collection. This will include an audit of Optus’s handling and resolution of at least five complaints made by or on behalf of Vulnerable Consumers which Optus will request be nominated by the TIO or, if no nomination is obtained, selected by a financial counsellor,
(the Audit);
(b)produce reports to the Singtel Optus Board in accordance with paragraph 7.5; and
(c) provide the following reports to the ACCC:
(1) scheduled written reports as described in paragraph 7.5; and
(2)a report of any issues that arise in relation to compliance with this Undertaking, including between Audit Reports.
7.4Optus will ensure the Compliance Auditor has access to all relevant sources of information in Optus’s possession or control in order to conduct the Audits, including without limitation:
(a)the ability to have Optus make available any officer, employee, representative and agent of Optus as requested by the Compliance Auditor to answer reasonable enquiries;
(b) the ability to make enquiries of the TIO;
(c)documents relating to Optus’s Compliance Program, including documents relevant to Optus’s compliance policy, complaints handling system, and staff training and induction; and
(d)any reports made by the Compliance Officer to the Singtel Optus Board regarding Optus’s compliance with the ACL.
Reporting
7.5 The Compliance Auditor must conduct an audit and prepare a detailed report:
(a) 9 months after the Commencement Date; and(b)annually from that date of the report referred to in paragraph 7.5(a) for the remaining Term of the Undertaking (the Audit Report).
7.6 Each Audit Report must include:
(a)the Compliance Auditor’s procedures in conducting the audit, or any change to audit procedures and processes since the previous Audit Report;
(b)an update on the Remediation Program, including the total amount paid, the number of consumers who have submitted a claim for remediation, the number of claims refused (and reasons for refusals) and the amount of any unclaimed funds;
(c)identification of any areas of uncertainty or ambiguity in the Compliance Auditor’s interpretation of any obligations contained in this Undertaking;
(d)the findings of the Audit, including whether Optus has implemented all obligations in relation to remuneration and incentives;
(e)recommendations about steps which should be taken to address any identified improper sales practices and risks of improper sales practices;
(f) all of the reasons for the conclusions reached in the Audit Report; and
(g) any qualifications made by the Compliance Auditor in forming their views.7.7Optus will provide a copy of an Audit Report to the ACCC within 20 days of its receipt from the Compliance Auditor.
7.8Optus must, within 30 days of the receipt of an Audit Report, provide a report in writing to the ACCC on its response to it, including the steps it proposes to take to address any findings of non-compliance and recommendations referred to in paragraph 7.6 above.
7.9Optus must report to the ACCC and to the Compliance Auditor any non-compliance with this Undertaking as soon as practicable after it becomes aware of that non-compliance.
7.10If, during the Term, Optus or the ACCC identifies potential variations to paragraphs 6.1 to 6.18 of this Undertaking which may more effectively address any identified improper sales practices and risks of improper sales practices, Optus will consult with the ACCC regarding the potential variations.
8 ACCC enquiries and recommendations
8.1For the purpose of monitoring compliance with this Undertaking, the ACCC may make reasonable enquiries of Optus with respect to its compliance with this Undertaking and Optus will, at its own expense, respond to such enquiries within 30 days or as otherwise agreed with the ACCC.
8.2If requested by the ACCC during the Term of this Undertaking, Optus will, at its own expense, cause to be produced and provide to the ACCC copies of such documents (excluding any legally privileged documents) in its power, possession or control relating to its performance of the obligations set out in this Undertaking.
8.3Optus will implement promptly and with due diligence any reasonable recommendations that the ACCC deems necessary to ensure that Optus fulfils the requirements of this Undertaking.
9 Administration
9.1The ACCC may authorise a member of the ACCC or an ACCC staff member to exercise a decision making function under this Undertaking on its behalf.
9.2The ACCC may, from time to time, extend the date by which any of the obligations in this Undertaking is to be satisfied. Such a request for an extension must be express and in writing.
9.3Information and documents required under this Undertaking will be provided via the ACCC’s Undertakings Portal whenever possible.
10 Acknowledgements
10.1 Optus acknowledges that:(a)the ACCC will make this Undertaking (excluding Confidential Schedule 2 and Confidential Schedule 4) publicly available including by publishing it on the Section 87B Undertakings Register on the ACCC’s website;
(b)the ACCC will, from time to time, make public reference to this Undertaking and Optus’s compliance with it including in news media statements and in ACCC publications;
(c)the ACCC may, from time to time, publicly report on Optus’s compliance with this Undertaking;
(d)this Undertaking in no way derogates from the rights and remedies available to any other person arising from the alleged conduct and any remediation paid does not operate as full release in respect of claims those persons may hold; and
(e)nothing in this Undertaking is intended to restrict the right of the ACCC to take action under the CCA (including the ACL) for penalties or other remedies in the event Optus does not fully implement and/or perform its obligations under this Undertaking or in relation to any other event.
Executed as an Undertaking
Signed for and behalf of Optus Mobile Pty Limited (ACN 054 365 696) pursuant to s 126 of the Corporations Act 2001 by its duly authorised representative with express authority in the presence of:
[SIGNED]
[SIGNED]
Signature of witness Signature of authorised representative [REDACTED]
[REDACTED]Name of witness (print)
16 June 202516 June 2025
Date Date Accepted by the Australian Competition and Consumer Commission pursuant to section 87B of the Competition and Consumer Act 2010 (Cth) on:
17 June 2025
Date and signed on behalf of the Commission:
[SIGNED]Acting Chair 17 June 2025 Date Schedule 1 – Compliance Program
1Optus will comply with all of the following Updated Compliance Program Requirements. The actions Optus takes to comply with these requirements are the Updated Compliance Program Actions.
Appointments
2Within 3 months of the Commencement Date, Optus will appoint a suitably qualified independent external compliance professional with expertise in consumer law (Compliance Advisor).
Risk Assessment
3 Optus will instruct the Compliance Advisor to:
3.1conduct a consumer law risk assessment of Optus’s Compliance Program within 3 months (or such longer time as reasonably required by the Compliance Advisor, but not to exceed 6 months) of being appointed as the Compliance Advisor (Risk Assessment); and
3,2provide a written report outlining their findings (Risk Assessment Report) to the Compliance Officer within one month of conducting the Risk Assessment.
4 Optus will use its best endeavours to ensure that the Risk Assessment Report:
4.1identifies the areas where Optus is at risk of breaching the ACL, taking into account, but not limited to, the conduct the subject of the Proceedings as set out in the Undertaking;
4.2 assesses the likelihood of these risks occurring;
4.3identifies where there may be gaps in Optus’s existing procedures for managing these risks; and
4.4provides recommendations for any action to be taken by Optus based on the Risk Assessment to address the risks described at paragraph 4.1 above, including any new elements that should be added to the Compliance Program (the Updated ACL Compliance Training Elements).
Compliance Policy
5Optus will, within 30 days of the Commencement Date, issue a policy statement outlining Optus’s commitment to compliance with the CCA (Compliance Policy).
6 Optus will ensure the Compliance Policy:
6.1 contains a statement of commitment to compliance with the ACL;6.2contains an outline of how commitment to ACL compliance will be realised within Optus;
6.3contains a requirement for all staff to report any Compliance Program related issues and ACL compliance concerns to the Compliance Officer identified in paragraph 6.13(a) of the Undertaking;
6.4contains a guarantee that whistleblowers with competition and consumer law compliance concerns will not be prosecuted or disadvantaged in any way and that their reports will be kept confidential and secure; and
6.5contains a clear statement that Optus will take action internally against any persons who are involved in a contravention of the ACL, and, as applicable, draws attention to the operation of section 77A of the CCA and/or section 229 of the ACL which prohibit Optus from indemnifying officers of Optus from payment of pecuniary penalties or legal costs from related proceedings for certain contraventions.
Whistleblower Protection
7 Optus will:
7.1ensure that it has whistleblower protection mechanisms to protect those coming forward with competition and consumer law complaints; and
7.2use its best endeavours to ensure that these mechanisms are consistent with good practice guidance identified in ASIC Regulatory Guide 270: Whistleblower policies, as in force or existing at the Commencement Date, tailored as required to Optus’s circumstances.
Complaints Handling
8Optus will ensure that its Compliance Program includes oversight of an enhanced complaints handling process. That process will address complaints by Vulnerable Consumers and will include store conduct procedures and a robust centralised process for the reporting, monitoring, identification, assessment, escalation, and timely resolution of complaints raising potential ACL concerns (the Complaints Handling Process). The Complaints Handling Process includes or will include:
8.1a process for referral of complaints concerning consumers identified as Vulnerable Consumers to the Specialist Care Team;
8.2a governance forum that will meet at least monthly to identify common characteristics across complaints for root cause analysis;
8.3a requirement to acknowledge and respond to complaints in accordance with the applicable industry code;
8.4an escalation mechanism for complaints that are not resolved within 30 days of receiving the complaint;
8.5recording and reporting on complaint response and resolution timeframes;
8.6guidance and training to be provided to relevant Optus staff on the minimum requirements for investigating complaints made by Vulnerable Consumers;
8.7guidance and training for relevant Optus staff on identifying Vulnerable Consumers, communicating effectively with Vulnerable Consumers and referring complaints to the Specialist Care Team; and
8.8a process for conducting quality assurance checks on remediation of Vulnerable Consumers to confirm all remediation steps have been completed.
9Optus will ensure its Complaints Handling Process is consistent with the TCP Code Complaint Handling standards, and the Australian/New Zealand Standard AS/NZS 10002:2022 Guidelines (as amended from time to time) for complaint management in organizations, as in force or existing at the Commencement Date, tailored as required to Optus’s circumstances.
10Optus will make information on its Complaints Handling Process available to consumers and staff.
Staff Training and Induction
11Within 6 months of receiving the Risk Assessment Report, Optus will ensure that the Compliance Program is updated to reflect the Updated ACL Compliance Training Elements and the Complaints Handling System (Updated Compliance Program).
12Optus will ensure that the Updated Compliance Program includes a requirement for compliance training at least annually for all officers, employees and representatives in retail customer facing roles of Optus (Relevant Optus Staff).
13Optus will ensure that the Updated Compliance Program includes a requirement that awareness of Optus’s obligations under the ACL forms part of the induction of all new Relevant Optus Staff.
14Optus will ensure that the compliance training and induction requirements in paragraphs 12 and 13 are prepared or approved by a suitably qualified compliance professional or legal practitioner.
15The compliance training and induction requirements in paragraphs 12 and 13 may be delivered online by Optus in the form of pre-recorded or digitised content.
16In addition to the compliance training referred to in paragraph 12, the Compliance Officer will direct Relevant Optus Staff to undergo additional ACL compliance training following any recommendations made by the Compliance Advisor in its Risk Assessment Report.
Reports to the Singtel Optus Board and Chief Executive Officer
17Optus will ensure that the Compliance Officer (following their appointment) reports to the Singtel Optus Board and Chief Executive Officer every 6 months on the Updated Compliance Program Actions and the continuing effectiveness of the Updated Compliance Program.
Schedule 2 – Remediation Program (Confidential)
[REDACTED]
Schedule 3 – Purchase of Certain Optus Licensee Stores
1.Shop G017 Castle Plaza Edwardstown, Edwardstown SA 5039
2.Shop SP132, Colonnades Shopping Centre, 54 Beach Road, Noarlunga SA 5168
3.Shop S082A Elizabeth City Shopping Centre 50 Elizabeth Way, Elizabeth SA 5112
4.Shop K1 Gawler Central Shopping Centre Cnr Cowan & Murray St, Gawler SA 5118
5.Shop G005A Golden Grove Village Shopping Centre, Cnr The Golden & Grove Ways, Golden Grove SA 5125
6.Shop 2047 Westfield Marion, 297 Diagonal Road, Oaklands Park SA 5046
7.Shop 44/1 Mt Barker Shopping Centre, McFarlene Street, Mount Barker SA 5251
8.Shop 64 Munno Para Shopping Centre, 600 Main North Road, Smithfield SA 5114
9.Shop 61 Northpark Shopping Centre, 264 Main North Road, Prospect SA 5082
10.Shop 48 Parabanks Shopping Centre, 68 John Street, Salisbury SA 5108
11.Shop 129-130 Level 2 Westfield Shopping Centre, 976 North East Road, Modbury SA 5092
12.Shop 14/204 Unley Shopping Centre, Unley Road, Unley SA 5061
13.Shop 212-213 West Lakes Shopping Centre, 111 West Lakes Boulevard, West Lakes, SA 5021
14.Shop SP010 Whitsunday Plaza, 8 Galbraith Park Drive, Cannonvale QLD 4802
15.Shop 53 Hinkler Central, 16 Maryborough Street, Bundaberg, QLD 4670
16.Shop 314 Sugarland Shopping Centre, 115 Takalyan Street, Avoca QLD 4670
17.Shop 108 Cairns Central Shopping Centre 21 Mcleod Street, Cairns QLD 4870
18.Shop GD2004 Canelands Shopping Centre, Cnr Victoria St & Mangrove Rd, Mackay QLD 4704
19.Shop 14 Castletown Shopping World, Cnr King Rd & Woolcock St, Hyde Park QLD 4812
20.Shop GF026 Clifford Gardens Shopping Centre, 110 Anzac Avenue, Toowoomba QLD 4350
21.Shop 25 Stockland Gladstone Shopping Centre, Corner of Dawson Highway & Philip Street, Gladstone QLD 4680
22.Shop 38 Gympie Central, Corner of Excelsior Road and Bruce Highway Gympie QLD 4570
23.Shop 096 Stockland Hervey Bay Shopping Centre, 6 Central Avenue, Pialba QLD 4655
24.Shop 33 Station Square, Lennon Street, Maryborough QLD 4650
25.74 Skyring Terrace, Newstead QLD 4006
26.Shop 1063B Noosa Civic Shopping Centre, 28 Eenie Creek Road, Noosaville QLD 4566
27.Shop 236 Stockland Rockhampton Shopping Centre, Yaamba Road, Rockhampton QLD 4701
28.Shop 116a Smithfield Shopping Centre, Cnr of Captain Cook and Kennedy Hwy, Smithfield QLD 4878
29.Shop 103 Margaret Street, Toowoomba City QLD 4350
30.Shop 255 Stockland Shopping Centre, 310 Ross River Road, Aitkenvale QLD 4814
31.Shop T118 Willows Shopping town, Cnr Hervey Range Rd & Thuringowa Dr, Kirwan QLD 4817
32.Shop T36 Palmerston Gateway Shopping Centre, 1 Roystonea Avenue, Yarrawonga NT 0830
33.Shop 106A Casuarina Shopping Centre, 247 Trower Road, Casuarina NT 0810
34.Shop 21 Norwood Place Shopping Centre, 161-169 The Parade, Norwood, SA 5067.
Schedule 4 – (Confidential)
[REDACTED]
ANNEXURE B – PROPOSED NOTICE
PUBLISHED BY ORDER OF THE FEDERAL COURT OF AUSTRALIA
Corrective Notice
Following proceedings instituted by the ACCC, the Federal Court has declared, by consent, that Optus Mobile Pty Ltd (Optus) contravened the Australian Consumer Law (ACL) by engaging in unconscionable conduct in relation to many consumers who were vulnerable or experiencing disadvantage, including First Nations Australians from regional, remote and very remote parts of Australia.
The unconscionable conduct included instances where Optus sales staff:
-subjected vulnerable consumers to undue pressure or influence to purchase products or services,
-failed to explain terms and conditions of contracts,
-sold consumers goods and services they did not want or could not use, including not having regard to whether the consumer had Optus coverage where they lived,
-sold consumers goods and services Optus knew or ought reasonably to have known they could not afford, and
-made false or misleading representations to four consumers that certain products were free when, in fact, that was not the case.
In some cases, despite knowing about the sales misconduct and that the conduct was subject to ongoing internal and external investigations, Optus pursued debt collection activities against vulnerable consumers, including by referring and selling their debts to third party debt collection agencies. Optus also referred or sold debts in circumstances where Optus (including its senior management) knew, or ought to have known, that contracts had been, or may have been, created by Optus staff without the knowledge of consumers.
The conduct took place in circumstances in which Optus’s senior management became increasingly aware, or ought to have become increasingly aware, that Optus sales staff were engaging in the inappropriate sales conduct.
Optus recognises that the nature and impact of the conduct on consumers was extremely serious. Optus has taken steps to remediate affected consumers and has in place a remediation program for consumers who have been impacted by similar improper sales practices. Further information about that remediation program is available at
Optus has also taken steps, and is committing to further steps, to reduce the risk of similar conduct occurring in the future. The 87B Undertaking is available at
The Federal Court has ordered that Optus:
-pay to the Commonwealth of Australia a pecuniary penalty in the amount of $100 million
-publish this corrective notice
-pay the ACCC’s costs of and incidental to the proceeding, fixed in the amount of $1.5 million
REASONS FOR JUDGMENT
O’SULLIVAN J:
The respondent, Optus Mobile Pty Ltd, is a wholly owned subsidiary of Singapore based Singtel Optus Pty Ltd and part of the Optus Group of companies. It is a private company incorporated in Australia and is currently Australia’s second largest provider of telephone and data services for mobile telephones and tablets.
The applicant, the Australian Competition and Consumer Commission, commenced proceedings against Optus alleging contraventions of ss 18, 21 and 29(1)(i) of the Australian Consumer Law.
Optus has admitted the contraventions.
The parties have provided a Statement of Agreed Facts and Admissions dated 13 June 2025 as well as joint submissions.
The SAFA is very long. I attach it as Schedule 1 to these reasons.
The consumers affected by the contraventions are referred to by the parties in the SAFA as the affected consumers. I adopt the same term.
The parties have agreed to orders by way of relief, including the imposition of a pecuniary penalty. The parties jointly seek declarations as to Optus’ contraventions, an order that Optus pay a pecuniary penalty of $100 million, a publication order requiring Optus to publish a notice in agreed terms regarding its contraventions, and that Optus pay the ACCC’s costs of and incidental to the proceeding.
It is for the reasons that follow that I consider the proposed pecuniary penalty to be appropriate. I am also satisfied that it is appropriate to make the declarations sought and to make the other orders as agreed between the parties.
OVERVIEW
These reasons deal with Optus’ conduct at stores owned by Optus or operated by Optus licensees. In all cases, the sales staff are referred to as “Optus sales staff”.
Between August 2019 and July 2023, Optus sales staff at 16 stores throughout South Australia, Queensland, Northern Territory, Victoria, Western Australia and Tasmania engaged in inappropriate sales practices by entering into contracts on Optus’s behalf with affected consumers, pursuant to which Optus supplied mobile products and services, as well as accessories.
Optus’ conduct involved vulnerable consumers, including people with mental disabilities, with reduced cognitive capacity, who were unemployed or were suffering from financial hardship, who had low financial literacy, and who had limited English proficiency and/or learning difficulties.
Many of the vulnerable consumers were First Nations Australians from regional and remote communities.
Despite Optus becoming aware of inappropriate conduct from in or about December 2019 and ongoing internal and external investigations, Optus pursued debt collection against vulnerable consumers, including referring debts to third-party agencies and/or factoring debts.
Optus’ systems and controls were inadequate to prevent or address the inappropriate conduct, and complaints were often unresolved until escalated to the Telecommunications Industry Ombudsman. Further, Optus failed to address systemic deficiencies with any sense of urgency, which enabled the inappropriate conduct to continue.
A commission-based remuneration structure endorsed by Optus created incentives for inappropriate sales practices, despite recommendations to review such policies to avoid exploiting consumer vulnerabilities.
As a result of the inappropriate conduct, many vulnerable consumers suffered financial hardship, by incurring significant debt in circumstances where they earnt little or no income. The affected consumers also suffered non-financial harm, such as shame, stress and emotional distress. The debt collection process caused fear amongst disadvantaged and vulnerable consumers who often simply did not understand how they had incurred these debts.
Apart from distress, the negative credit impacts limited access by some consumers to other services. Some consumers achieved resolution after significant time, effort, and emotional strain by their carers, advocates and financial counsellors. Indeed, the carers, advocates, community legal services, financial counsellors and the TIO should be singled out for their efforts in protecting these vulnerable consumers.
STATUTORY FRAMEWORK
This matter involves contraventions of ss 18, 21 and 29 of the ACL.
Principles – Unconscionable Conduct
Section 21 of the ACL provides:
Unconscionable conduct in connection with goods or services
(1)A person must not, in trade or commerce, in connection with:
(a)the supply or possible supply of goods or services to a person; or
(b)the acquisition or possible acquisition of goods or services from a person;
engage in conduct that is, in all the circumstances, unconscionable.
…
(2)For the purpose of determining whether a person has contravened subsection (1):
(a)the court must not have regard to any circumstances that were not reasonably foreseeable at the time of the alleged contravention; and
(b)the court may have regard to conduct engaged in, or circumstances existing, before the commencement of this section.
(3)It is the intention of the Parliament that:
(a)this section is not limited by the unwritten law relating to unconscionable conduct; and
(b)this section is capable of applying to a system of conduct or pattern of behaviour, whether or not a particular individual is identified as having been disadvantaged by the conduct or behaviour; and
(c)in considering whether conduct to which a contract relates is unconscionable, a court’s consideration of the contract may include consideration of:
(i)the terms of the contract; and
(ii)the manner in which and the extent to which the contract is carried out;
and is not limited to consideration of the circumstances relating to formation of the contract.
The concept of unconscionable conduct under the ACL has been described as conduct contrary to “a normative standard of conscience which is permeated with accepted and acceptable community standards”: Stubbings v Jams 2 Pty Ltd [2022] HCA 6; (2022) 276 CLR 1 at [57] (Gordon J); Productivity Partners v ACCC [2024] HCA 27; (2024) 419 ALR 30 at [104] (Gordon J).
The evaluative character of the inquiry means that statutory unconscionability is best understood as “a fact-specific and context-driven application of relevant values by reference to the concept of a conscience”: Paciocco v Australia and New Zealand Banking Group Ltd [2015] FCAFC 50; (2015) 236 FCR 199 [296]-[299] (Allsop CJ); Productivity Partners at [284], [295], [301], [303], [323] (Steward and Gleeson JJ).
Section 22 of the ACL provides a non-exhaustive list of matters to which the Court may have regard for the purpose of determining whether a supplier has contravened s 21 of the ACL. These factors do not represent criteria, nor should they be mechanistically considered. The range of conduct capable of amounting to statutory unconscionability is intentionally broad. Courts have recognised that it may encompass “bullying and thuggish behaviour, undue pressure and unfair tactics, taking advantage of vulnerability or lack of understanding”: Tonto Home Loans Australia Pty Ltd v Tavares[2011] NSWCA 389; (2011) 15 BPR 29 at [291].
Further, under the statutory regime, proof of disadvantage is not necessary. Systemic or patterned misconduct may itself be sufficient to demonstrate statutory unconscionability. Unconscionability may be found even without an identified “victim”, where the conduct in question forms part of a broader corporate system or practice. Nevertheless, the presence of a victim may be taken into consideration by the Court: ASIC v Kobelt [2019] HCA 18; (2019) 267 CLR 1 at [83]-[89] (Gageler J), [232] (Nettle and Gordon JJ), and [295] (Edelman J); Productivity Partners at [106], [230], [319]-[320].
Optus’ practices contravened the Telecommunications Consumer Protections Code, approved under the Telecommunications Act 1997 (Cth). Although not an “applicable industry code” under the ACL, the Full Court has observed that non-compliance with public regulations is central when evaluating unconscionable sales conduct: ACCC v Lux Distributors Pty Ltd [2013] FCAFC 90 at [71] (Allsop CJ, Jacobson and Gordon JJ).
Principles – Misleading or Deceptive Conduct
b.Consumer 18 had visited an Optus Store to buy $20 phone credit and left with an expensive deal that he did not need and could not have afforded;
c.the contract was a business contract;
d.the Optus Sales Staff member had found an ABN online to use, but that ABN had nothing to do with Consumer 18; and
e.she and Consumer 18 would like the contract voided, Consumer 18 released from any obligations under it, an apology, and an indication of how Optus would prevent this recurring.
450.On 1 May 2023, an Optus Case Manager marked the complaint as “resolved” and that “collections may resume”, due to being unable to contact Consumer 18 or the lawyer. Prior to this:
a.the Optus Case Manager contacted Consumer 18 via email on 28 April 2024 advising that he had attempted to call Consumer 18 but had been unable to reach him; and
b.the Optus Case Manager claimed that he attempted to call the lawyer, but that the call did not go through.
451.On 4 May 2023, the lawyer contacted Optus via email to follow up on the complaints. In that email, the lawyer indicated that:
a.she had not heard from the Optus Case Manager, despite Optus advising her on 19 April 2023 that he would contact her within 24 hours;
b. she had called Optus earlier on 4 May 2023, and Optus:
i.advised that, because she was not the account holder, she could not speak to the Optus Case Manager about the complaints and that she would need to visit an Optus Store in person; and
ii.would not provide her an email address to which she could send a copy of her authority to act on behalf of Consumer 18.
452.On 11 May 2023, the Optus Case Manager contacted the lawyer via email to arrange a phone call. Between 11 May 2023 and 13 July 2023, the lawyer was not able to successfully speak to the Optus Case Manager.
453.On or around 13 July 2023, the lawyer made a complaint to the TIO on behalf of Consumer 18.
454.On 14 July 2023, in response to the TIO complaint, an Optus Customer Relations Executive emailed the lawyer to arrange a time to speak.
455.On 17 July 2023, the Optus Customer Relations Executive spoke to the lawyer in relation to Consumer 18’s account. In that conversation:
a.the Optus Customer Relations Executive advised the lawyer that he could not speak to her about Consumer 18’s account until Optus received multi-factor authorisation (MFA) from Consumer 18; and
b.when the lawyer informed Optus that Consumer 18 no longer used the mobile number registered for MFA for the account, the Optus Customer Relations Executive advised the lawyer that he could not send the MFA to Consumer 18’s new phone number and that Consumer 18 would need to visit an Optus Store to update his phone number.
456.Between 17 July 2023 and 31 July 2023, the Optus Customer Relations Executive and the lawyer corresponded in relation to the MFA issue. On 31 July 2023, the Optus Customer Relations Executive marked the complaint as “resolved” and that “collections may resume”, as MFA had not been completed.
457.On 31 July 2023, the lawyer informed the TIO that Optus would not progress the complaint due to the MFA requirement. By this point in time, the lawyer had provided Optus with the community legal centre’s legal terms of engagement for Consumer 18, certified copies of Consumer 18’s drivers licence, and verbal and written authorities.
458.On 9 August 2023, the TIO sent Optus a letter about a possible systemic issue relating to Optus Stores in the NT (including the Optus Palmerston Gateway Store) which identified Consumer 18’s complaint number by way of example.
459.By 9 August 2023, Optus knew or reasonably ought to have known that Consumer 18 was one of the consumers impacted by misconduct the subject of the Darwin Suntel investigation.
460.Around the time of and after receipt of the TIO letter dated 9 August 2023, Optus’s Collections Office sent Consumer 18 emails on 9 and 11 August 2023, requesting payment for outstanding balances totalling $2,971.06, so that the account “does not progress further into collections”.
461.On 11 August 2023, an Optus Customer Resolution Manager sent an “urgent” email to the Optus Customer Relations Executive seeking information about Consumer 18’s TIO complaint, and seeking “FS protection for 4 weeks on all his account [sic]”. That information was provided in an email dated 14 August 2023.
462.On 14 August 2023, an Optus Staff member sent an internal email which stated that the TIO complaint relating to Consumer 18 may have been “worse” than some other consumer complaints, given that the ABN was falsified.
463.Between 14 and 18 August 2023, Optus Staff attempted to conduct MFA in relation to Consumer 18 on multiple occasions, at first by requesting he visit an Optus Store in person and then by email verification.
464.On 21 August 2023, an Optus Staff member stated in an internal email relating to Consumer 18’s complaint that they needed to rectify the “obvious deception” and that they did not need MFA for a customer to apply a credit to their account.
465.On 21 August 2023, Optus waived the final outstanding balances and accessory charges on the Consumer 18 Contracts.
1.19 Consumer 20
466.Consumer 20 was born in 1941. As at February 2023, Consumer 20 was 81 years old. At all material times, Consumer 20 was retired and her only income was the age pension in the amount of approximately $1,166 per fortnight. Consumer 20 has access to a $100,000 reverse mortgage secured against the unit she owns to assist her in paying her bills.
467.On 17 February 2023, Consumer 20 attended the Optus West Lakes Store because she wanted to reduce the costs of her internet plan. During her visit:
a.Optus Sales Staff told Consumer 20 there were no cheaper internet plans available (she was, at that time, on a plan for $59 per month);
b.Optus Sales Staff represented to Consumer 20 that she could have two “free” phones;
c.Optus Sales Staff pressured Consumer 20 to accept two additional phones despite her telling Optus Sales Staff she did not want or need the two phones; and
d.Optus Sales Staff provided Consumer 20 a printed copy of a contract, which Consumer 20 did not sign.
468.On 17 February 2023, Optus Sales Staff at the Optus West Lakes Store sold Consumer 20 two phones and two phone or data plans under one contract (Consumer 20 Contract), linked to at least two separate accounts in Consumer 20’s name. This contract had:
a. a monthly fee of $67.75 for the first twelve months;
b. a monthly fee of $87.75 thereafter;
c. a total minimum cost of $804.15; and
d. a total cost of $2,919.00 if the contract continued for a 36-month term.
469.At no point prior to Consumer 20 entering into the Consumer 20 Contract on 17 February 2023 did the Optus Sales Staff:
a.explain the terms and ongoing costs of the Consumer 20 Contract to Consumer 20;
b.explain to Consumer 20 that she would receive two mobile phone plans and a new phone number; and/or
c.inform Consumer 20 of the total cost of the Consumer 20 Contract or explain to Consumer 20 the ongoing costs of the Optus Products and Optus Services.
470.Prior to or around the time Consumer 20 entered into the Consumer 20 Contract, Optus Sales Staff:
a. conducted one credit check in relation to the Consumer 20 Contract; and
b.misrepresented that the two new phones were “free” (Consumer 20 Free Phones Representation).
471.On or around 20 February 2023, Consumer 20 received two new mobile phones and a SIM in the mail. On the same day, Consumer 20 called Optus to obtain assistance with setting up the modem and the SIM, but Optus was unable to assist.
472.In or around February or March 2023, Consumer 20 returned to the Optus West Lakes store to make a complaint about the Optus Products sold to her pursuant to the Consumer 20 Contract. The complaint was not resolved in store.
473.On or around 22 February 2023, Consumer 20 made a complaint to the TIO.
474.On or around 26 February 2023, Consumer 20 was charged under the Consumer 20 Contract. She continued to be billed for her internet.
475.Shortly after making the TIO complaint, on or around 27 February 2023, Consumer 20 spoke to the Optus Resolutions Team and was told she could return the phones and, on the same day, Consumer 20 posted the two phones back to Optus.
476.On or around 2 March 2023, an Optus technician attended Consumer 20’s house to set up the modem and SIM, but the technician was unable to complete the setup. On around 7 March 2023, an Optus technician attended Consumer 20’s house again and was successful in setting up Consumer 20’s internet.
477.On 7 March 2023, Optus made an offer to resolve Consumer 20’s complaint which included that Optus would remove the two Samsung phones from her account and credit the phones once they had been returned, cancel the new phone number, provide a replacement modem and SIM and make a “once off ex-gratia credit” for internet charges.
478. Despite the above:
a.on or around 21 March 2023, Optus attempted to debit $773 from Consumer 20’s bank account; and
b. on 26 March 2023, Optus issued a bill of $673 to Consumer 20.
479.On 29 March 2023, the TIO sent Optus a request to stop credit management in relation to Consumer 20.
480.On 29 March 2023, Optus sent an email to Consumer 20 confirming it had received the two phones and had placed a credit on her account for each of the phones.
481.On 14, 18 and 20 April 2023, Optus sent Consumer 20 email and text message reminders regarding payment of $59.
482.In or around late April 2023 or early May 2023, Consumer 20 spoke to an Optus Staff member. On that call, Optus agreed to waive the charges and refund Consumer 20 the amount she had already paid. The refund was completed on 8 May 2023.
483.On 15 May 2023, Consumer 20’s TIO complaint was resolved.
484.In or around early June 2023, Consumer 20 received two communications from Optus stating she owed Optus $9 and an additional $15 for late payment. On 5 June 2023, Consumer 20 emailed an Optus Staff member about the matter, which resulted in its resolution.
1.20 Consumer 22
485.Consumer 22 was born in 1937 and was 85 years old in March 2023. At all material times:
a. Consumer 22 lived by herself in a retirement village;
b. Consumer 22’s only income was age pension payments from Centrelink; and
c.Consumer 22 had only a basic understanding of technology and only used her phone for text messages and calls.
486.On 20 March 2023, Consumer 22 attended the Optus Westfield Marion Store because she had an issue with her phone screen and wanted to get it repaired.
487. During her visit to the Optus Westfield Marion Store on 20 March 2023:
a.Consumer 22 showed Optus Sales Staff her phone, which was a low-cost and basic model;
b.Optus Sales Staff told Consumer 22 they could not repair the phone and suggested she attempt to have the phone repaired at a phone repair shop or another Optus store. Consumer 22 was unable to get the phone repaired and returned to the Optus Westfield Marion Store;
c.Optus Sales Staff again told Consumer 22 they could not repair her phone, and offered to sell her a new mobile phone. Consumer 22 felt she had no other option but to buy a new phone;
d.Consumer 22 told the Optus Sales Staff that she did not want to pay for a phone on a post-paid plan, that she was on a pre-paid plan, that she was currently paying only about $180 per year, and that she only used her phone for calls and text messages;
e.Optus Sales Staff told Consumer 22 that she was not able to buy a phone outright and had to pay for the phone monthly. This statement was false; and
f.Optus Sales Staff selected a phone for Consumer 22 and had Consumer 22 sign a contract on a screen.
488.On 20 March 2023, Optus Sales Staff at the Optus Westfield Marion Store sold Consumer 22 one phone and one phone or data plan under one contract (Consumer 22 Contract). This contract had:
a. a monthly fee of $66.46 for the first twelve months;
b. a monthly fee of $86.46 thereafter;
c. a total minimum cost of $1,377.56; and
d. a total cost of $2,872.56 if the contract continued for a 36-month term.
489.Prior to or around the time that Consumer 22 signed the Consumer 22 Contract on 20 March 2023, Optus Sales Staff:
a.conducted two credit checks in relation to the Consumer 22 Contract, one of which was withdrawn; and
b. provided Consumer 22 with an invoice showing a “total balance” of $0.00.
490.At no point prior to Consumer 22 signing the Consumer 22 Contract on 20 March 2023 did the Optus Sales Staff:
a.provide a copy of the Consumer 22 Contract to Consumer 22 or ensure she read the Consumer 22 Contract;
b.explain the terms of the Consumer 22 Contract to Consumer 22;
c.inform Consumer 22 of the total cost of the Consumer 22 Contract or explain to Consumer 22 the ongoing monthly cost of the Optus Product and Optus Service provided; and/or
d.explain to Consumer 22 that she could buy a significantly cheaper phone outright and continue having a pre-paid plan.
491. At the time of entering the Consumer 22 Contract, Consumer 22 did not know:
a.she was purchasing a phone valued at $1,348.56 or $36.46 per month, and a pre-paid plan which was $49 per month;
b.the total cost of the Consumer 22 Contract; and
c.that she was able to buy a significantly cheaper phone outright and continue having a pre-paid plan.
492.On either 20 or 21 March 2023, Consumer 22 informed her step-son, that she had a problem with her phone screen and bought a new phone. Her step-son informed her that she had purchased a phone costing around $1,300 or $1,500, which Consumer 22 was very surprised to hear.
493. On 22 March 2023:
a.Consumer 22’s step-son contacted the Optus Westfield Marion Store on Consumer 22’s behalf and asked to return the phone and cancel the post-paid plan. The step-son was transferred to the Optus Customer Service and asked for a manager or supervisor to call him back, but no representative from Optus returned his call; and
b.Consumer 22’s step-son made a complaint via the Optus webchat. The Optus Customer Service representative told him that Optus Customer Service had limited options to rectify the issue as the contract was made in-store, and suggested that they return to the Optus Westfield Marion Store. Subsequently, the complaint was escalated to Optus’s Customer Relations teams.
494.On or around 25 March 2023, Consumer 22 had her old phone repaired for a total cost of $265.
495.After 25 March 2023, and in or around March or April 2023, Consumer 22 visited the Optus Westfield Marion Store to return the phone. The store manager refused to accept the return and gave Consumer 22 details for the customer helpline. Consumer 22 called the Optus customer helpline and was told that she could not return the phone if it had been taken out of the box.
496.Between 22 March 2023 and 13 April 2023, Consumer 22’s step-son and Consumer 22 had multiple calls and emails with Optus Staff.
497.On multiple occasions, Optus Staff sought completion of MFA from Consumer 22 in order to allow her step-son to act on her behalf.
498.In the course of these calls, Consumer 22’s step-son told Optus Staff that Consumer 22 had not opened the device box herself but that the salesperson had done so in store.
499.On 13 April 2023, Optus offered to waive any associated mobile costs provided the device was returned in an unopened box within 14 days.
500. On 20 April 2023:
a.Optus sent Consumer 22 an invoice for the amount of $1,311.10, and the invoice stated that this amount would be automatically deducted on 5 May 2023.
b.Following receipt of the invoice, Consumer 22’s step-son contacted Optus CRT. He stated that Consumer 22 had received a bill for $1,311, he and Consumer 22 were preparing to return the mobile phone within 24 hours; and
c.Optus Staff advised Consumer 22’s step-son that Consumer 22 would need to complete the MFA process again in order for Optus Staff “to proceed with the case”.
501.On 21 April 2023, Consumer 22’s step-son made a complaint to the TIO on Consumer 22’s behalf.
502.On 27 April 2023, Optus sent Consumer 22’s step-son an email setting out an agreed resolution that he would return the phone to Optus at no cost to Consumer 22 and Optus would apply a credit of $1,311.10 to Consumer 22’s account to waive the outstanding balance and refund $66.46 to Consumer 22.
503.On 5 May 2023, Optus deducted $1,311.10 from Consumer 22’s account. Optus reversed the transaction on the same day.
504.On or around 11 May 2023, after Consumer 22’s step-son posted the mobile phone to Optus on behalf of Consumer 22, Consumer 22’s complaint was resolved. Optus cancelled the Consumer 22 Contract, waived all outstanding fees and issued a refund of a payment of $66.46 (this did not include a refund for a phone case as Consumer 22 was unable to return it as she did not have the receipt).
1.21 Consumer 23
505.Consumer 23 has Down Syndrome, and lives with his parents. Consumer 23 lives with an intellectual disability caused by Down Syndrome, which makes it difficult for him to converse with other people easily.
506.Consumer 23’s main income is a disability support pension, as well as income from working up to eight hours a week at a retail shop. Consumer 23 also receives assistance through the NDIS. Consumer 23’s parents manage his finances, regularly transferring small amounts of money into his bank account for him to spend.
507.On or around 26 June 2023, Optus Sales Staff at the Optus Rockingham Store sold Consumer 23 the following Optus Products and Optus Services under two contracts (Consumer 23 Contracts):
a.First Contract: one phone, one phone or data plan, one accessories bundle, one equipment repayment fee for a modem, and one internet plan. This contract had:
i. a monthly fee of $132.91 for the first six months;
ii. a monthly fee of $142.91 thereafter;
iii. a total minimum cost of $1,328.51; and
iv. a total cost of $5,084.76 if the contract continued for a 36-month term.
b. Second contract: accessories bundle. This contract had:
i. a monthly fee of $2.76;
ii. a total minimum cost of $99.36; and
iii. a total cost of $99.36 if the contract continued for a 36-month term.
508. The Consumer 23 Contracts:
a.were for an “Individual/Sole Trader” account and listed an ABN that was not Consumer 23’s ABN, Consumer 23 having never had an ABN;
b. listed an ABN under the name of an unrelated person; and
c. listed an email address that was not Consumer 23’s email address.
509.Prior to or around the time that Consumer 23 signed the Consumer 23 Contracts, Optus Sales Staff:
a. conducted two credit checks in relation to the Consumer 23 Contracts; and
b.entered false information into the Consumer 23 Contracts and/or Consumer 23’s credit checks, namely an ABN that was not Consumer 23’s ABN (and not in his name) and an email address that was not Consumer 23’s email address.
510. At the time of entering the Consumer 23 Contracts, Consumer 23:
a. had an Apple iPhone 12;
b. had access to his parents’ home internet and modem; and
c. did not know what antivirus software was for.
511.On 27 June 2023, Optus issued a bill to Consumer 23 for the amount of $135.67 in respect of the Consumer 23 Contracts.
512.On or around 27 June 2023, Consumer 23’s father went to the Optus Rockingham Store to return the Optus Products purchased under the Consumer 23 Contracts and make a complaint. Consumer 23’s father explained to the Optus Sales Staff in store that Consumer 23 has Down Syndrome, which leaves him with impaired ability to understand figures and basic conversations, and was sold multiple Optus Products and Optus Services that he did not need. During the store visit, Optus Sales Staff told Consumer 23’s father that the sales to Consumer 23 were fine, refused to accept the return of the Optus Products purchased under the Consumer 23 Contracts, and did not inform Consumer 23’s father how to escalate his complaint.
513.On or around 27 June 2023, Consumer 23’s father called Optus. Consumer 23’s father understood from that phone call that Optus would cancel the Consumer 23 Contracts and allow him to return the Optus Products.
514.In or around early July 2023, Consumer 23’s father attempted to return the Optus Products purchased under the Consumer 23 Contracts but was only able to return one phone.
515.On 13 July 2023, Consumer 23’s father received an email from Optus addressed to Consumer 23 which stated that Consumer 23’s business account of $135.67 was late for payment.
516.On 17 July 2023, Optus sent Consumer 23’s father two emails and Consumer 23 two text messages advising that payment of $135.67 was late.
517.On or around 17 July 2023, Consumer 23’s father and Consumer 23 attended an appointment with a financial counsellor. During the appointment, the financial counsellor and Consumer 23 called Optus, and Optus agreed:
a. to cancel the Optus Services acquired under the Consumer 23 Contracts;
b. that the modem would be returned to Optus; and
c.that Consumer 23 could keep the earbuds and charger with no amount payable by Consumer 23.
1.22 Consumer 24
518.Consumer 24 was born in 1951 and was around 71 years old in September 2023. Consumer 24 has dementia and is easily confused. Consumer 24 receives assistance from support workers, her friend (with whom Consumer 24 resides) and her friend’s daughter.
519.At all material times, Consumer 24 was retired and Consumer 24's main source of income was the age pension.
520.On or around 12 September 2023, Consumer 24 attended the Optus Launceston Store, because her phone was not charging. At that point, Consumer 24 owned her mobile phone outright, paid $30 per month for a pre-paid plan with Optus and had only ever used an iPhone.
521. During Consumer 24's visit to the Optus Launceston Store:
a.Optus Sales Staff told Consumer 24 that they could not assist with the issue with her iPhone and started trying to sell Consumer 24 a new Samsung phone;
b.Optus Sales Staff continually insisted on selling Consumer 24 a new phone, despite Consumer 24 telling Optus Sales Staff numerous times that she did not want a new phone and just wanted her phone fixed;
c.Optus Sales Staff provided Consumer 24 with several boxes of accessories, told Consumer 24 that she had to take them all as part of the package and gave Consumer 24 the impression that the items were free;
d.Consumer 24 felt confused and had the impression that Optus Sales Staff were trying to confuse her; and
e. Optus Sales Staff filled in a document on Consumer 24's behalf.
522.On or around 12 September 2023, Optus Sales Staff at the Optus Launceston Store sold Consumer 24 one phone, one phone or data plan and one accessories bundle under one contract (Consumer 24 Contract). This contract had:
a. a monthly fee of $60.46 for the first twelve months;
b. a monthly fee of $70.46 thereafter;
c. a total minimum cost of $652.48; and
d. a total cost of $1,571.04 if the contract continued for a 24-month term.
523.At no point prior to Consumer 24 entering into the Consumer 24 Contract on 12 September 2023 did the Optus Sales Staff:
a. ask Consumer 24 about her phone usage or financial position;
b.explain the terms and ongoing costs of the Consumer 24 Contract to Consumer 24;
c.explain to Consumer 24 that she was purchasing a phone and multiple accessories as part of the Consumer 24 Contract; and/or
d.inform Consumer 24 of the total cost of the Consumer 24 Contract or explain to Consumer 24 the ongoing cost of the Optus Products and Optus Services provided.
524.Prior to or around the time that Consumer 24 entered into the Consumer 24 Contract on 12 September 2023, Optus Sales Staff:
a.pressured Consumer 24 into purchasing a new mobile phone, accessories and mobile phone plan when she attended the Optus Launceston Store for assistance in repairing her mobile phone; and
b. conducted two credit checks in relation to the Consumer 24 Contract.
525.At the time Consumer 24 entered into the Consumer 24 Contract, Consumer 24 did not understand:
a. that she was signing up to a mobile phone plan;
b. what type of mobile phone she was purchasing; and
c. what the accessories were and didn’t know that she would have to pay for them.
526.On or around 13 September 2023, Consumer 24 returned to the Optus Launceston Store with a support worker to cancel the Consumer 24 Contract and return the items, but Optus Sales Staff sent them away.
527.On or around 13 September 2023, Consumer 24 told her friend’s daughter about her experience at the Optus Launceston Store. After this:
a.her friend’s daughter called Optus's general customer service number on Consumer 24's behalf to attempt to speak to Optus's complaints department, but was informed that she would need to make a complaint online;
b.on 20 September 2023, her friend’s daughter called the Optus Launceston Store and spoke to Optus Staff:
i.her friend’s daughter explained to Optus Staff that Consumer 24 was an older lady with dementia who had gone to the Optus Launceston Store for help with her mobile phone, but had been pressured into purchasing a new mobile phone on a contract; and
ii.Optus Staff informed her friend’s daughter that Consumer 24 could not return the mobile phone as Consumer 24 had signed the contract and the box had already been opened.
528.On 20 September 2023, her friend’s daughter made a complaint to the TIO, and requested that the Consumer 24 Contract be cancelled without penalty and that Consumer 24 be allowed to return the mobile phone and accessories.
529.On 28 September 2023, in response to the TIO complaint, Optus advised Consumer 24 that Optus would cancel the contract, refund Consumer 24 for the $60.46 already paid, waive the handset payout fee upon return of the mobile phone, and waive the cost of the accessories.
0
6
4