$100m fine over Optus conduct branded ‘unconscionable’

You may have noticed a familiar company making headlines lately, and not for reasons it would be proud of.

Recent developments are raising eyebrows—and serious concerns—across Australia.

As the dust settles, many Australians are left wondering how this all happened, and what it means for everyday consumers like us.

What happened?

Between 2019 and 2023, Optus staff at 16 different stores sold mobile and internet products to at least 400 vulnerable customers.

Many of these customers were First Nations Australians living in regional and remote areas.

Others included people living with mental disabilities, learning difficulties, or limited financial literacy.

Some were unemployed or financially dependent, making them especially vulnerable to aggressive sales tactics.

The result? Many customers ended up with products they did not want, could not use—sometimes because there was no coverage in their area—or simply could not afford.

To make matters worse, when bills went unpaid, some were pursued by third-party debt collectors—sometimes for years—leading to financial and emotional distress.

How did this come to light?

The Australian Competition and Consumer Commission (ACCC) brought the matter to court, describing Optus’s actions as ‘unconscionable conduct’.

Optus has admitted to unconscionable conduct after targeting vulnerable Australians with unwanted and unaffordable products. Image Source: aiyoshi597 / Shutterstock

ACCC deputy chair Catriona Lowe stated the company’s behaviour caused ‘significant financial harm’ and ‘emotional distress and fear’ to those affected.

She added that Optus management had knowledge of these practices but failed to act promptly.

Optus has since admitted to the misconduct, started compensating affected customers and pledged to overhaul internal systems.

Chief executive officer Stephen Rue called the company’s conduct ‘inexcusable and unacceptable’ and promised major reforms.

What changes is Optus making?

In addition to the $100 million fine (which still awaits Federal Court approval), Optus has committed to several changes:

  • A $1 million donation to support digital literacy for First Nations Australians.
  • An overhaul of its complaints and debt collection systems.
  • Improved training for staff, focusing on cultural safety and ethical sales conduct.
  • Adjustments to sales staff remuneration to remove incentives for aggressive selling.
  • Buying back 34 licensee stores in the Northern Territory, Queensland and South Australia to tighten oversight.
  • Termination of staff involved in inappropriate sales behaviour.

A pattern of behaviour in the industry

Unfortunately, this is not an isolated incident. In 2021, Telstra was fined $50 million for similar conduct, after selling mobile contracts to 108 Indigenous customers who could not afford or use them.

These cases point to deeper, systemic issues in how large companies treat vulnerable Australians—especially in remote and Indigenous communities.

Why does this matter?

For many Australians in remote or disadvantaged areas, telecommunications services are more than just convenience—they are essential lifelines.

When large corporations take advantage of that need, the damage can be long-lasting.

Mounting debt, anxiety and a growing mistrust in vital services are just some of the consequences.

The $100 million penalty is part of broader efforts to reform sales practices and rebuild trust in the telco industry. Image Source: WitthayaP / Shutterstock

Lynda Edwards, director of First Nations policy and campaigns at Financial Counselling Australia, says penalties are important—but not enough.

‘What we really need is structural reform and genuine cultural safety built into how businesses engage with First Nations communities,’ she says.

What lies ahead?

While the fine imposed on Optus is significant, it is only the beginning of what must be a larger conversation.

All Australians—regardless of location, income or background—deserve to be treated fairly and respectfully by the companies they rely on every day.

Your thoughts matter

Have you or someone you care about experienced high-pressure sales tactics from a telecommunications provider or another big company?

Do you think the $100 million fine is enough to prevent future misconduct, or is more action needed to protect vulnerable Australians?

We welcome your thoughts and experiences in the comments section below.

Also read: Optus set to dial up prices as Australians brace for budget squeeze

Abegail Abrugar
Abegail Abrugar
Abby is a dedicated writer with a passion for coaching, personal development, and empowering individuals to reach their full potential. With a strong background in leadership, she provides practical insights designed to inspire growth and positive change in others.

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