From sales to sanctions: Optus faces $100 million penalty for unconscionable sales practices

On 18 June 2025, the Australian Competition and Consumer Commission (ACCC) announced that it has reached an agreement with Optus Mobile Pty Ltd (Optus) to request the Federal Court impose a record $100 million penalty on Optus for engaging in unconscionable conduct when selling telecommunications goods and services to consumers across Australia.

The imposition of the penalty is subject to Court approval.

Optus admitted to breaching the Australian Consumer Law and signed a court enforceable undertaking with the ACCC, undertaking that it will compensate impacted consumers and improve its internal systems.

This case follows a similar ACCC action against Telstra in 2021, which resulted in a $50 million penalty for unconscionable conduct involving Indigenous consumers.

Background

Between August 2019 and July 2023, Optus sales staff at 16 retail stores pressured over 400 consumers into purchasing telecommunications products and services they did not want, need or could afford. These consumers included individuals living with mental disabilities, diminished cognitive capacity, limited financial literacy and those for whom English is a second language. A significant number of consumers were First Nations Australians from regional and remote communities.

Examples of the conduct engaged in by the sales staff included:

• misleading consumers into believing products were free or bundled at no extra cost;
• failing to explain contract terms in an understandable way;
• selling products to consumers without Optus coverage in their area; and
• manipulating credit checks and adding false business identifiers to accounts.

In some cases, Optus pursued debt collection against consumers even after internal investigations revealed fraudulent or inappropriate sales practices.

Following a referral from the Telecommunications Industry Ombudsman, the ACCC commenced court action against Optus for engaging in unconscionable conduct on 31 October 2024.

Takeaways

This development confirms the ACCC’s ongoing commitment to addressing inappropriate sales practices, particularly those that cause significant harm to consumers or small businesses, disproportionately affect consumers experiencing vulnerability or disadvantage and other conducts that fall into the ACCC’s current compliance and enforcement priorities.

We expect the regulator will continue to exercise its investigative and enforcement powers to address these conducts, as evidenced by its recently launched review into unsolicited selling and lead generation practices.

This development also serves as a timely reminder to businesses that engaging in unconscionable conduct can carry substantial financial and reputational consequences.

To reduce the risk of unconscionable conduct, businesses should prioritise transparency, fairness and honesty in their dealings with consumers. This includes clearly communicating contract terms, avoiding high-pressure sales tactics and maintaining accessible and effective complaint resolution processes.

For advice on mitigating these risks and ensuring compliance with the Australian Consumer Law, please contact one of our experts listed in this article.