Australia’s second-largest telecommunications provider, Optus, has been ordered to pay a $100 million penalty after a Federal Court found the company engaged in “appalling” sales practices that targeted hundreds of vulnerable customers across the country.
The ruling comes as the telco struggles to restore public trust following multiple network outages that disrupted triple-0 emergency services.
Court Rebuke and Systemic Failures
Federal Court Justice Patrick O’Sullivan described Optus’s behaviour as “extremely serious”, pointing to systemic failures across 16 stores between 2019 and 2023. Customers included First Nations Australians, people with disabilities, and individuals living in remote areas with little to no Optus coverage.
Optus admitted staff sold phones and plans that were unaffordable, unsuitable, or unusable. In some cases, contracts were signed without explanation of terms, while others were pursued aggressively by debt collectors. Justice O’Sullivan said senior management “knew or ought to have known” of the failures but failed to intervene.
Optus Response and Remediation
CEO Stephen Rue called the misconduct “totally and utterly unacceptable,” pledging structural reforms. Optus says it has remediated most of the 400-plus affected customers, brought back franchise stores involved in the practices, and committed $1 million toward digital literacy initiatives for First Nations Australians.
The company has also entered into a five-year court-enforceable undertaking requiring independent audits and ACCC oversight. “Optus is committed to full transparency,” the company said in a statement.
Regulatory and Political Fallout
The Australian Competition and Consumer Commission (ACCC), which pursued the case after tip-offs from financial counsellors, welcomed the decision. “We heard from many people who experienced not just financial harm but emotional distress and fear,” said ACCC deputy chair Catriona Lowe.
Consumer advocates argue the fine may not go far enough. “$100 million is not a lot of money to a company like Optus,” said Lynda Edwards of Financial Counselling Australia, warning that telcos enjoy “free rein” in how they self-regulate.
Former ACCC chair Professor Allan Fels went further, suggesting Optus’s licence should be reconsidered, citing “three huge failures” — two related to triple-0 outages and now one involving vulnerable consumers.
The penalty follows a precedent: rival Telstra paid $50 million in 2021 for similar misconduct targeting Indigenous Australians.
A Critical Moment for Optus
The scandal intensifies scrutiny of Optus’s ownership by Singapore’s Singtel, itself controlled by state investor Temasek Holdings. While Singtel has pledged continued investment in Optus’s infrastructure, pressure is mounting on regulators to hold the telco accountable for repeated failures.
For millions of Australians, the question is no longer whether Optus can compete on price or coverage, but whether it can be trusted to operate responsibly.
