Australian Competition and Consumer Commission v Optus Mobile Pty Limited

Case

[2019] FCA 106

12 February 2019


Details
AGLC Case Decision Date
Australian Competition and Consumer Commission v Optus Mobile Pty Limited [2019] FCA 106 [2019] FCA 106 12 February 2019

CaseChat Overview and Summary

In the case of Australian Competition and Consumer Commission v Optus Mobile Pty Limited, the Australian Competition and Consumer Commission (ACCC) alleged that Optus Mobile Pty Limited (Optus) had contravened consumer protection laws by failing to adequately inform customers that they were automatically enrolled in a direct billing service for third-party content, resulting in customers making purchases without their knowledge or consent. The Federal Court was tasked with determining the appropriate penalty for Optus's actions.

The court had to decide the appropriateness of the agreed declaration and the $10 million penalty. The court considered several factors, including the public interest in resolving civil penalty matters, the need for predictability in outcomes, and the cooperation of Optus in providing information and documents during the ACCC's investigation. The court also considered Optus's past conduct, termination of the direct billing service, and the company's cooperation in reaching an agreement with the ACCC.

The court found that Optus's actions were inadequate in ensuring that customers were not misled and that the company continued to offer the direct billing service despite unresolved issues. The court also noted that Optus's cooperation in the proceedings, cessation of the direct billing service, and past conduct all played a role in determining the appropriate penalty. The court concluded that the agreed declaration and $10 million penalty were appropriate, considering the factors outlined above. The court ordered Optus to pay the penalty and the ACCC's costs, with liberty granted to the ACCC to restore the proceeding if any issues arose in the implementation of the customer refund program.
Details

Areas of Law

  • Consumer Law

Legal Concepts

  • Consumer Protection

  • Breach of Contract

  • Unconscionable Conduct

  • Restitution

  • Compensatory Damages