Optus fined $100 million for predatory sales to vulnerable Australians as outage fallout continues
Federal Court orders Optus to reform sales practices after finding vulnerable customers were pressured to buy unwanted products; independent inquiry into a prolonged emergency-call outage is underway.
Optus was fined $100 million by the Federal Court after regulators found the telco pressured hundreds of vulnerable customers to buy phones and accessories they did not want or could not afford. The Australian Competition and Consumer Commission alleged that about 429 customers were sold items during a two-year period through June 2023. The court's decision also included an Enforceable Undertaking to reform sales practices and strengthen support for vulnerable customers.
Optus said it has remediated most impacted customers identified by the ACCC and will continue to work with financial counsellor services to identify and support those affected. The company also announced it will contribute $1 million to digital literacy initiatives for First Nations Australians.
Separately, Optus is under scrutiny for a 13-hour triple-0 outage on Thursday that authorities have linked to up to four deaths. Officials said a botched firewall update blocked hundreds of emergency calls across South Australia, Western Australia, the Northern Territory and New South Wales. Optus did not publicly address the outage until hours later. On Wednesday the company announced an independent inquiry led by Kerry Schott to examine the outage's causes, the operational management of triple-zero calls on the Optus network, the company’s response, and whether it adhered to policies and legal requirements.
Optus' board chairman John Arthur said the board is working with chief executive Stephen Rue and his team to understand what went wrong and to prevent a repetition, and that the board is committed to transparency. The broader context includes a 2023 outage that prompted leadership changes, including the resignation of former chief executive Kelly Bayer Rosmarin 12 days after that outage. Rue, a former NBN Co chief, was appointed in mid-2024. The Schott review is expected to be completed before year-end.
Industry observers note the decision underscores ongoing regulatory pressure on telecommunications companies to protect vulnerable consumers and ensure reliable access to emergency services, as Optus navigates a year marked by outages and governance scrutiny.