ACCC sues Optus over unconscionable sales, debt collection
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The news: Optus is facing a consumer lawsuit from the competition regulator over "unconscionable sales" conduct and debt collection, resulting in alleged breaches of national consumer law.
The context: According to the Australian Competition and Consumer Commission (ACCC), hundreds of customers were sold telecommunications goods and services they often did not want or need. In some cases Optus is alleged to have then pursued debts from customers that resulted from these sales.
The ACCC’s allegations against Optus are linked to 429 consumers that allegedly faced inappropriate sales conduct and/or were on the receiving end of Optus' pursuit of consumer debts, including when the company knew contracts were created fraudulently.
The regulator noted that many impacted consumers were First Nations Australians from regional and remote areas or people from culturally and linguistically diverse backgrounds.
What they said: ACCC chair Gina Cass-Gottlieb said: "Optus’ unconscionable conduct continued after management became aware of deficiencies in its systems that were being exploited by sales staff, and despite this, failed to implement fixes.
"In some cases, we allege Optus took steps to protect its own financial interests by clawing back commissions to sales staff but failed to remediate affected consumers," she said.
The source: ACCC
