If you’ve ever felt overwhelmed by the fine print on a phone contract or wondered if you’re getting a fair deal from your telco, you’re not alone.

In a bombshell development, Optus—one of Australia’s largest telecommunications companies—has agreed to pay a staggering $100 million penalty after admitting to some truly shocking behaviour.

This penalty, if rubber-stamped by the federal court, will be the largest ever handed down in the Australian telco sector.


According to the Australian Competition and Consumer Commission (ACCC), Optus’s misconduct wasn’t just a one-off slip-up. Between 2019 and 2023, more than 400 customers across 16 stores were affected by what the ACCC called 'unconscionable conduct'.

Many of these customers were already facing significant challenges: some were living with mental disabilities or diminished cognitive capacity, others were unemployed, and many had language barriers.


In one particularly distressing example, an Indigenous Australian who spoke English as a second language and lived in a remote community with no Optus coverage was pressured by staff to enter a store.

Believing they were being offered a free phone, they ended up saddled with two high-end phones, three phone plans, and a mountain of accessories, totalling a minimum cost of $3,808 over two years.

Not long after, they were signed up for yet another plan, adding $540 to their bill. When they couldn’t pay, the debt was sent to collectors.


The ACCC found that Optus staff pressured customers into purchasing products they didn’t want, need, or couldn’t use or afford.

Many customers were left confused about what they had agreed to, as staff failed to explain the terms and ongoing payment obligations clearly.

In some cases, sales were made without checking whether customers even had Optus coverage in their area.

The result is that some of the most vulnerable people in our community were left with debts they couldn’t pay, and in some cases, were hounded by debt collectors for years.

As ACCC deputy chair Catriona Lowe put it, 'It is not surprising, and indeed could and should have been anticipated, that this conduct caused many of these people significant emotional distress and fear.'

Optus’s new CEO, Stephen Rue, has publicly apologised, calling the misconduct 'inexcusable' and admitting the company should have acted faster when the problems were first reported.

The telco has agreed to compensate affected customers and overhaul its internal systems to prevent this from happening again.

Staff responsible for the dodgy sales have reportedly lost their jobs.

But for many, the damage is already done. Financial Counselling Australia (FCA) has slammed the company’s 'predatory practices', blaming sales commissions and a lack of oversight for the scandal.

The FCA says this case is just the latest example of why the telco sector needs stronger, enforceable regulation to protect consumers, especially those who are most at risk.

If you’re over 60, you might be especially wary of aggressive sales tactics or confusing contracts.

This case is a timely reminder always to read the fine print, ask questions, and never feel pressured into signing up for something you don’t fully understand or need.

If you’re unsure, consider bringing a trusted friend or family member along, or request information in writing so you can review it at your own pace.

And remember: if you ever feel you’ve been misled or pressured into a contract, you have rights.

The ACCC and the Telecommunications Industry Ombudsman can help, and you may be entitled to compensation or to have your contract cancelled.
Have you or someone you know ever been caught out by a confusing phone contract or pushy sales tactics? Do you think the telco industry needs tougher rules? Share your stories and thoughts in the comments below.

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