Optus Fined AU$100 Million for Exploiting Vulnerable Australian Customers

Australian telecommunications company Optus was fined AUD 100 million (approximately US$66 million) by a federal court for engaging in unconscionable and appalling sales practices between 2019 and 2023, targeting vulnerable customers including those with mental disabilities, financial hardships, and Indigenous people in remote areas. The court found that Optus sold unnecessary phones and contracts to over 400 disadvantaged individuals, many of whom were pressured into debt they could not afford, with some customers even living outside of Optus's service coverage. Justice Patrick O'Sullivan described the conduct as predatory, noting that senior management either knew or should have known about systemic failures enabling such practices. Optus has committed to remediating affected customers and pledged contributions to support financial and digital literacy initiatives in Indigenous communities. This penalty comes amid additional scrutiny following a recent Optus network outage that disrupted emergency services, linked to four deaths, prompting further investigations and calls for improved service reliability. Optus's parent company Singtel has emphasized ongoing investments to address these issues despite the controversies.