Optus is being sued by the consumer watchdog over allegations of shocking sales conduct towards first nations and other vulnerable customers. The ACCC claims people were sold products they didn't need and couldn't afford and then some were chased by debt collectors.
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00:00Tony Cork has uncovered allegations that Optus sold phones to First Nations customers who
00:07lived in areas with no network coverage.
00:10I find that pretty outrageous that they were selling products and plans to people for phones
00:15that weren't going to work as soon as they got back home.
00:18Now the regulator is suing Optus in the federal court.
00:21We allege that Optus sales staff manipulated credit checks in order to oversell phones
00:28and plans to vulnerable consumers and that they did so without undertaking coverage checks.
00:35In some cases, Optus then pursued debt collection activities.
00:40The watchdog alleges Optus engaged in unconscionable conduct against about 430 customers, mostly
00:47in Darwin and Mount Isa in Queensland.
00:50Many of these consumers were facing learning difficulties, were unemployed or financially
00:56dependent.
00:57This is degrading at the highest level as I see it, you know, for people living with
01:02disability but more important for our First Nations people.
01:06It follows a case where Telstra was fined $50 million for targeting more than 100 Indigenous
01:12customers.
01:14This case will examine the role of Optus management.
01:17We allege that Optus management in the sales, in effect reporting levels, including senior
01:24management became aware of the conduct and of the failures in the systems but allowed
01:30the conduct to continue.
01:32Optus has apologised.
01:33It sacked or disciplined the staff involved, is repaying affected customers and is cooperating
01:39with the ACCC.