Optus Slapped with Record Fine for Appalling Sales Conduct and Customer Mistreatment

Australia's telecommunications landscape is buzzing with a stern message delivered by the nation's watchdog: Optus, the second-largest telco, has been hit with a hefty A$1.5 million (approximately $988,000 USD) fine for what regulators are calling "appalling conduct." This landmark penalty, the largest ever imposed by the Australian Communications and Media Authority (ACMA) for NBN-related consumer protection breaches, underscores a persistent failure to safeguard vulnerable customers during aggressive sales campaigns.

The controversy stems from Optus's door-to-door and telemarketing sales of National Broadband Network (NBN) services between October 2018 and March 2020.

During this period, Optus was found to have misled and failed to protect hundreds of customers, selling them NBN plans they simply couldn't use. Astonishingly, investigations revealed that 240 customers were signed up for services despite not being connected to the NBN at all. Imagine paying for a service you could never access, a frustrating ordeal that became a reality for many.

What makes this misconduct particularly egregious is the vulnerability of those targeted.

ACMA's findings highlighted that many affected customers were among the most susceptible in society, including individuals grappling with language barriers or intellectual disabilities. These are the very people who rely on clear communication and ethical sales practices, yet Optus fell woefully short.

The company also neglected to implement crucial sales policies designed to protect customers from non-English speaking backgrounds or those with mental or physical disabilities – a critical oversight that had devastating real-world impacts.

Beyond simply selling unusable services, Optus also faced accusations of switching customers to NBN plans without their explicit consent or even their knowledge.

This unauthorized transfer of services further eroded customer trust and demonstrated a concerning disregard for basic consumer rights. It wasn't an isolated incident; Optus had already been on ACMA's radar, having faced similar penalties and paid compensation in 2020 for earlier NBN sales issues. This latest fine is a direct consequence of a subsequent investigation, revealing that the company's problematic practices persisted even after previous warnings.

ACMA Chair Nerida O'Loughlin didn't mince words, emphasizing that telcos have a fundamental responsibility to prioritize customer protection, especially when dealing with vulnerable populations.

"This is simply appalling conduct by Optus," O'Loughlin stated, underscoring the severity of the breaches and the regulator's commitment to holding companies accountable. The message is clear: the industry must do better, and consumer welfare cannot be an afterthought in the pursuit of sales targets.

For its part, Optus has acknowledged the breaches, stating that it has "significantly strengthened" its sales practices and customer care processes since the incidents.

While such assurances are standard, the hefty fine serves as a stark reminder that regulatory bodies are vigilant, and past transgressions will not be easily forgotten. This case sets a precedent, sending a powerful signal across the telecommunications sector that protecting customers, particularly the most vulnerable, is not just good business practice – it's a legal and ethical imperative.