Optus agrees to A$100m penalty over unconscionable sales practices in ACCC settlement

The Australian Competition and Consumer Commission (ACCC) announced on 18 June 2025 that Optus, a subsidiary of Singtel, has reached a negotiated settlement over allegations of “unconscionable conduct” in its sales practices. Optus has admitted liability and agreed to a A$100 million (S$83.4 million) penalty, which will require Federal Court approval before it takes effect. The company has already provisioned for the fine in its financial accounts for the year ending 31 March 2025.

The case, initiated by the ACCC in October 2024, relates to sales made to approximately 429 consumers at 16 Optus stores between August 2019 and July 2023. The watchdog found that many of those affected were vulnerable individuals, including people with cognitive impairments, learning disabilities, financial hardship or limited English proficiency.

According to the ACCC, Optus staff pressured customers into signing contracts for multiple devices and costly accessories, misrepresented certain products as free, and failed to disclose essential terms. In some instances, staff did not check whether network coverage was even available in the customer’s area. In one case, a resident in a remote community with no Optus service was sold expensive plans, leading to debts exceeding A$4,000 that were later referred to collection agencies.

ACCC Deputy Chair Catriona Lowe highlighted the significant harm caused, noting that customers not only faced debts of several thousand dollars but also endured years of pressure from debt collectors, which caused profound distress. She stressed that Optus had engaged in systemic unconscionable conduct by exploiting people least able to protect their own interests.

Optus has publicly apologised for its actions, confirmed its acceptance of responsibility and committed to compensating affected consumers through enforceable undertakings. The company has issued refunds, waived outstanding debts and allowed customers to keep their devices. In addition, Optus has introduced reforms to reduce the risk of recurrence, including changes to staff incentive structures, enhanced training, revised sales processes and improved complaints handling. Employees directly responsible for the misconduct have been dismissed.

This case adds to a series of regulatory actions taken against Optus in recent years. In November 2024, the Australian Communications and Media Authority (ACMA) fined the company A$12 million after a network outage in November 2023 left more than 2,100 people unable to reach emergency services for almost 14 hours. In March 2024, ACMA imposed a further A$1.5 million fine when it found Optus had failed to upload key customer data to the Integrated Public Number Database between January 2021 and September 2023, potentially putting around 200,000 customers at risk.

The fallout from the November 2023 outage also prompted leadership changes at the company. Chief Executive Officer Kelly Bayer Rosmarin resigned following the failure, with Chief Financial Officer Michael Venter stepping in as acting CEO.

The A$100 million penalty, if approved, will be one of the largest ever imposed for breaches of consumer law in Australia. Regulators have framed the case as a clear warning that systemic misconduct, particularly against vulnerable groups, will attract substantial consequences. The ACCC has also stressed that penalties of this scale are designed to deter similar practices across the telecommunications sector and beyond.

The Federal Court will now review the proposed settlement to determine whether it is appropriate. Optus has stated that the financial impact has already been accounted for, meaning the penalty will not alter its forward-looking statements. The company has indicated that it remains committed to working with regulators to ensure compliance and rebuild public trust.

Consumer advocates have welcomed the settlement, describing it as overdue recognition of the harm caused to individuals who lacked the means or knowledge to challenge unfair contracts. The case has also raised broader questions about oversight by parent company Singtel, which faces scrutiny over whether it exercised sufficient governance over its Australian subsidiary.

The ACCC has confirmed that it will monitor Optus’s compliance with its undertakings and ensure restitution reaches affected customers. For the regulator, the case is emblematic of a wider effort to strengthen consumer protections, especially for those most at risk of exploitation in essential service markets such as telecommunications.